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Kenya Power FY2017
Rank: Member Joined: 8/6/2018 Posts: 299
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Ericsson wrote:KaunganaDoDo wrote:I say Again, RUN...i hear a voice shouting in the wilderness...make way , get ready...A tsunami is inbound...This is the time to get saved..Take the walk of faith and Run Explain A tsunami is inbound... The end year will be terrible....messy,..dirtier.... kindly find the nearest island
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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KaunganaDoDo wrote:
Patience is the Key...Not that this type of patience is good for you...The Announcement will come from the House on the Hill...
@KaunganaDoDo nailed it!  Pesa Nane plans to be shilingi when he grows up.
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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These will have no bearing on the results we are waiting.This directive will be implemented next month which is already another financial year of 1st july 2018-30th june 2019.What we are waiting anytime from now is results for 1st july 2017-30th june 2018. Towards the goal of financial freedom
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Ericsson wrote:KaunganaDoDo wrote:kawi254 wrote:If Electricity tariffs go down it will because of LTWP is already coming online to the grid gradually i.e 300MW (~210MW since wind doesn't blow always)
Is it possible for GoK to renegotiate PPAs with IPPs? Magufuli did it in Tanzania and Museveni did it in Uganda (Bujagali power) The Tariff reduction has nothing to do with Lake Turkana Wind...The reduction will happen on the base tariff (which is fixed , also called nonfuel tariff)...The base tariff haS ONE TO ONE RELATIONSHIP with KPLC OPEX, power purchase costs ...and operating margins...reducing the base tariff without the compensating measures means KPLC will be left to bear the load...and with similar amouts eat into its bottom line...LTWP will affect the tariff via the Fuel Cost charge FCC which vary month on month...Reduction in FCC doesnt add anything to KPLC bottomline since the Fuel Cost Charge is a passthrough charge...As we speak, 40MW out of 310MW have been integrated into the grid...Commissioning of the 365 turbines is an ongoing process untill december Reduction in FCC has an effect to KPLC bottomline since if you look at the amount KPLC passes to consumers vis a vis the amount it spends,the amount passed to consumers is usually less. KPLC makes a loss in FCC. Check page 112 of the 2017 annual report http://kplc.co.ke/AR2017...%20Annual%20Report-.pdf
I coppy that. Loud and clear ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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Uhuru orders review of electricity tariffs for SMEsHow can electricity tariffs be reduced (reviewed) without renegotiating thermal PPAs? I occasionally drive by Athi-River Gulf Power and i have never found it generating power i.e they just being paid to sit idle Thanks to Kiraitu Murungi and Kibaki company. An idea is for GoK to renegotiate with Rabai & Tsavo whose PPA ends in 2023 for an early exit. 1) Ministry of Energy has made application to stop charging VAT on Fuel Levy component of electricity bill as that amounts to double taxation as Fuel already taxed VAT. 2) As per Aug 2018 KNBS figures Thermal generation contribution was 9% in July 2018 down from a high of 30% in February 2018 but consumer hasn't seen the reduced price of more Geothermal and Hydro generation [ Thanking the long rains 2018] . 3) As of 16.10.2018 LTWP is averaging 139 MW with 212/365 wind turbines online but this cheap wind energy is not hitting consumers pockets. 4) Early 2019 Kengen will online 168 MW of Olkaria V but Jubilee Govt has lied before how geothermal power will reduce our bills but i remain hopeful.
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Rank: Member Joined: 8/6/2018 Posts: 299
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kawi254 wrote:Uhuru orders review of electricity tariffs for SMEsHow can electricity tariffs be reduced (reviewed) without renegotiating thermal PPAs? I occasionally drive by Athi-River Gulf Power and i have never found it generating power i.e they just being paid to sit idle Thanks to Kiraitu Murungi and Kibaki company. An idea is for GoK to renegotiate with Rabai & Tsavo whose PPA ends in 2023 for an early exit. 1) Ministry of Energy has made application to stop charging VAT on Fuel Levy component of electricity bill as that amounts to double taxation as Fuel already taxed VAT. 2) As per Aug 2018 KNBS figures Thermal generation contribution was 9% in July 2018 down from a high of 30% in February 2018 but consumer hasn't seen the reduced price of more Geothermal and Hydro generation [ Thanking the long rains 2018] . 3) As of 16.10.2018 LTWP is averaging 139 MW with 212/365 wind turbines online but this cheap wind energy is not hitting consumers pockets. 4) Early 2019 Kengen will online 168 MW of Olkaria V but Jubilee Govt has lied before how geothermal power will reduce our bills but i remain hopeful. Boss, Rabai Runs everyday....its the only Thermal with Must Run Attribute due to system stability and voltage support...Tsavo Power Runs between 6.30pm to 10pm... currently when hydrology is good.... The VAT on electricity is not going anywhere.. When Hydrology improvement happen as currently, the effect is via Reduction in Fuel Cost Charge... this month the FCC is Ksh 2.5 per kwh Compared to around 5 shillings early this year... Last month LTWP generated around 2 million units ....When finally all turbines are commissioned , they will be doing around 120 Million units per month... Reduction in Tariffs , especially the Base tariffs will affect KPLC... Whenever tariff cuts happen, it goes to Kplc Opex and Return on the Asset Base...
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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limanika wrote:This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced Let's wait and see if the president directive will be obeyed Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:limanika wrote:This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced Let's wait and see if the president directive will be obeyed When you elect MFF, what do you expect. Remember KPLC is under kanisa. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 5/6/2008 Posts: 199
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Off topic but, my thoughts on why is power expensive?
Poorly negotiated PPAs. Not just the energy costs, other costs such as capacity factors.
Excess generation. Someone has to pay for excess powe generation. It's always the consumer through:
1. Higher Tariff
2. Government subsidies (ultimately borne by consumer's tax)
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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tandich wrote:Off topic but, my thoughts on why is power expensive?
Poorly negotiated PPAs. Not just the energy costs, other costs such as capacity factors.
Excess generation. Someone has to pay for excess powe generation. It's always the consumer through:
1. Higher Tariff
2. Government subsidies (ultimately borne by consumer's tax)
Good thinking but don't think we have too much excess power right now...good thing they saw sense and scrapped the 5,000MW program. Problem is inflated project costs, corruption in power sector, inefficiencies, etc. All these add to the cost of power which you and me have to bear one way or other. If pork is serious let him address these problems bottom-up. Not top down. And His job every day 8-5 should be to seek ways to reduce cost of business. No need to give us promises they should just work and produce results
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Rank: Member Joined: 8/6/2018 Posts: 299
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Ericsson wrote:limanika wrote:This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced Let's wait and see if the president directive will be obeyed IF, IF...IFS....No, it is already worked on... New Lower Domestic Tariffs ... Coming ASAP effective November...
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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KaunganaDoDo wrote:Ericsson wrote:limanika wrote:This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced Let's wait and see if the president directive will be obeyed IF, IF...IFS....No, it is already worked on... New Lower Domestic Tariffs ... Coming ASAP effective November... http://www.mediamaxnetwork.co.ke/477411/headache-for-uhuru-in-electricity-bills-cut/It will be a delicate task for the ministry of Energy and Energy Regulatory Commission (ERC) following President Uhuru Kenyatta’s directive yesterday that power bills should come down within a month to cushion small and medium enterprises from the high cost of doing business. The two agencies will walk a tight rope given that Treasury had already factored in revenue from numerous levies reflected in power bills. Looking at the breakdown, a Sh300 power token, a major chunk of the levies go to taxes at Sh39.78, followed by fuel index at Sh33.79 and rural electrification programme (REP) which takes Sh10.68. These levies gobble up about 30 per cent of the electricity cost, and could be the possible areas set to be reduced to make any significant dip in power tariffs. But here lies the dilemma: This is the revenue needed to actualise Big Four projects on one hand while on the other cheap power is a key catalyst for the programme, especially the manufacturing component. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:KaunganaDoDo wrote:Ericsson wrote:limanika wrote:This will not work, Mr president. Please determine the actual cost of electricity and let people pay just that. If you want to reduce cost, work first on inefficiencies at Kenya power. And it's better when govt works quietly, we prefer when you just announce after review behind the scenes is complete, that tariffs have reduced Let's wait and see if the president directive will be obeyed IF, IF...IFS....No, it is already worked on... New Lower Domestic Tariffs ... Coming ASAP effective November... http://www.mediamaxnetwork.co.ke/477411/headache-for-uhuru-in-electricity-bills-cut/It will be a delicate task for the ministry of Energy and Energy Regulatory Commission (ERC) following President Uhuru Kenyatta’s directive yesterday that power bills should come down within a month to cushion small and medium enterprises from the high cost of doing business. The two agencies will walk a tight rope given that Treasury had already factored in revenue from numerous levies reflected in power bills. Looking at the breakdown, a Sh300 power token, a major chunk of the levies go to taxes at Sh39.78, followed by fuel index at Sh33.79 and rural electrification programme (REP) which takes Sh10.68. These levies gobble up about 30 per cent of the electricity cost, and could be the possible areas set to be reduced to make any significant dip in power tariffs. But here lies the dilemma: This is the revenue needed to actualise Big Four projects on one hand while on the other cheap power is a key catalyst for the programme, especially the manufacturing component. Bought a 5k token, power costs 3,574.74 rest (28.5%) is swallowed by Jubilee as taxes. KPLC Token Mtr No. Token: Date:2018-10-9 9:31:8 Units kWh:226.25 Amount Ksh 5,000 Token Amount Ksh 3,574.74 Tax Ksh 663.28 REP Ksh 178.73 WARMA Ksh 5.61 ERC Ksh 6.78 Fuel Index Ksh 565.61 Forex Ksh -17.37 Inflation Adjustment Ksh 22.62 In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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