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Kenya Power FY2017
limanika
#191 Posted : Tuesday, October 16, 2018 8:10:14 PM
Rank: Veteran

Joined: 9/21/2011
Posts: 2,032
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
KaunganaDoDo
#192 Posted : Tuesday, October 16, 2018 8:50:37 PM
Rank: Member

Joined: 8/6/2018
Posts: 299
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...
Ericsson
#193 Posted : Wednesday, October 17, 2018 9:23:39 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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
Angelica _ann
#194 Posted : Wednesday, October 17, 2018 9:36:33 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
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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