selah wrote:This govt should liberalise this sector just like they did with telecommunication by licensing more distributors.
If more players were allowed in this sector I belive we would enjoy competitive pricing just like we are enjoying in telecommunication.
The other Option is for the govt to form a parastatal that will run the distribution thereby subsidising electricity
this process, I belive, will attract more investors and raise our competitive edge.
@selah: think hard about it; suppose you had the money and were invited by the GoK to be the second power distributor; how would you go about competing with KPLC?
Would you start laying new distribution lines? If so where would you lay them [since KPLC already owns all existing way-leaves]?
Somethings are not as easy as they are made to sound.
The process of libralising power transmission and distribution has already started with the establishment of KETRACO - a transmission company.
Transmission means getting the power from the generating stations to the local substations. distribution means from the substation to the consumer.
At the moment KPLC is doing both. Eventually, KETRACO will take over transmission and KPLC will be left with distribution alone.
that way, other companies can come in and bid for distribution contracts for newly opened frontiers, e.g., the many residential developments coming up in Athi-River and Kitengela areas.
Remember that several years back, KPLC was doing everything from generation to transmission and distribution. Then KenGen was hived off and now we have several competing power generators eventhough KenGen still controls over two thirds of the market.
Which reminds me of the telecoms that you are using as an example: SCOM has over 70% of the market, and it is not the most efficient nor the cheapest!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.