Gordon Gekko wrote:My reckoning is that electricity consumption for each household is constant i.e. you do not decide to switch off lights in your house at 9 pm instead of your bedtime of 10pm because it is expensive. This means that whether it is hydro or thermal generated is irrelevant - the onset of rains is therefore irrelevant.
Hydropower contributes the BULK (& cheapest) of electricity in Kenya. 75% thermal generation would mean 50-100% rise in cost of electricity which DOES reduce usage for residential or commercial or industrial. Not good for KPLC or consumers.
Gordon Gekko wrote:KPLC will grow by connecting more households and somehow encouraging industries to consume more - but then industries have discovered that they can generate and even sell excess.... But as more households connect, wouldn't fixed costs rise?
Fixed costs will rise but the marginal cost to connect each new consumer is not as high (except for rural areas) since once you have power poles in place along a street, connecting more consumers is 'cheaper'.
So what if Fixed Costs rise? As long as 'new' consumers use the product helping offset the cost.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett