Kenya power has disconnected power to the whole of Makongeni.

I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.

Even where there is no corruption KP officials should be found culpable for negligence.

This is why power bills will always be high and KP will never stop hemorrhaging money.


Power utility firms should avoid costly trespass suits

EPRA has increased the recoverable system losses from 14.9% to 19.9% (+500bps) retrospectively from 1st July 2020.

This comes after GoK gave the loss making utility a one year moratorium on loan repayments (on-lent).

@Monk Apologies if i've come across as blaming genuine victims. Note that I've used "victims" in quotes to differentiate from genuine victims who have suffered at the hands of KP and deserve compensation.

Also note my second paragraph asking for punishment on errant officials as prescribed by the law irrespective of which institution they come from.

My aim was to highlight a trend that is well documented on undeserving individuals being compensated using public funds at the expense of taxpayers. Take SGR compensation that landed NLC officials in court.

When do they come out?

Excerpts of Ormat [Olkaria III] Q2 2020 Earnings Call Transcript touching on KPLC:

Quoting Doron Blachar -- Chief Executive Officer
....
"
1. The fourth majeure letter we received from KPLC in April has an immaterial impact on our revenue as agreed by KPLC....So as you said, we have a long-term contract with KPLC, end of last quarter we received the force majeure letter and we analyzed it as immaterial. This quarter, we have discussed with KPLC, and they actually agreed to our position that is totally immaterial and it's already in the numbers. We don't have any discussions with the KPLC on our PPA, on the pricing. There's some other PPAs that are much higher than ours. And the only discussion we had was on the force majeure that was totally immaterial.

2. KPLC has been slowing its payments for the last, I think, two years, but they keep on paying.

3. Power generation in our power plants declined by 4.7% to 1.44 million megawatt hours in the second quarter of 2020. This decline is attributable to several factors; including the curtailment of our generation in Olkaria power plant in Kenya
"



Below from ORMART's Q1 earnings call for the period ending March 31, 2020:

"On April 17 we received from KPLC, our customer in Kenya, a notice declaring a force majeure event due to the impact of COVID-19. In their letter, they are claiming to reduce the Olkaria complex contracted capacity from 150 megawatts to 133.9 [Phonetic] megawatts. We believe that the notice will not have a material impact on our expected revenue."

"First of all in Kenya, we have both capacity payments and energy payments. And the capacity payments is the vast majority of the income coming from the power plant. The capacity payment remains as it is on those curtailments, and the thing that it's not paid is the energy. On the 150 megawatts to 133.9 megawatts drop, we are still negotiating and discussing with the utility if they have the ability to have to make this drop, because according to the contract they don't have it. So our expectation is it eventually it will be a non-significant drop on revenue coming from the power plant."

The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup

The tough question is how will Kenya Power get out of its financial hole.

Gok should reduce its shareholding from the current 50% to 25%.That way management of the company will improve and finances will be healthy.