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Kenya Power - what's the latest?
murchr
#41 Posted : Friday, May 10, 2013 7:12:05 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
VituVingiSana wrote:
A lesson for me. Populism not sense will always won out. Sigh, I shall bail out ASAP. Where's @thedeal who prefers Umeme to KPLC... Careful what happened to us in KPLC doesn't happen to you in Umeme.


smile
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
For Sport
#42 Posted : Friday, May 10, 2013 8:24:14 AM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Glad I recently bailed out. the stingy dividends were not very encouraging. And the DPs statements show who is boss here (definitely not the shareholders).
mkonomtupu
#43 Posted : Friday, May 10, 2013 9:03:58 AM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public
dunkang
#44 Posted : Friday, May 10, 2013 9:29:56 AM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
On the other hand, what would have the 25p.c rate hike meant to the entire economy?
Receive with simplicity everything that happens to you.” ― Rashi

2012
#45 Posted : Friday, May 10, 2013 9:34:38 AM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
I think this is a good challenge for KPLC. I'm a shareholder and I also think KPLC needs to be more efficient and expand. Only 6% of Kenya's population has electricity after 50 years of independence with KPLC in existence.
KPLC needs a manager and not an engineer at the helm and you'll see that's why Kengen is doing well and KPLC is not.

BBI will solve it
:)
mkonomtupu
#46 Posted : Friday, May 10, 2013 9:37:49 AM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
dunkang wrote:
On the other hand, what would have the 25p.c rate hike meant to the entire economy?


The economy still has to pay either by buying power from IPPs or paying through debt and government guarantees for new power projects. Remember in this country after the controversy over the Turkwell project, we stopped building power plants for a decade because donors didn't want to touch energy sector because of civil/evil society noise like in Sondu miriu. We couldn't keep up with demand and in the year 2000 we had to source for expensive emergency power producers. Someone made good money there. Someone has to pay for power plants either our generation or our kids. choices have consequences
rryyzz
#47 Posted : Friday, May 10, 2013 9:52:18 AM
Rank: Member


Joined: 5/19/2012
Posts: 552
What ails this company are its operational inefficiencies. The company needs a CEO who's not risen up the ranks from within, someone who will be bold enough to crack the whip on his managers.This is currently lacking, look at the companies responses to consumer complaintsShame on you Shame on you Shame on you
KENGEN, has managed to recruit managers from outside the energy sector and its performance can be seen. Compare this with KPLC.

The company will still make huge profits at its current tariffs if only it reins in on its inefficiencies.
Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.... Leo Buscaglia
dunkang
#48 Posted : Friday, May 10, 2013 9:59:03 AM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
2012 wrote:
Only 6% of Kenya's population has electricity after 50 years of independence with KPLC in existence

propaganda at its best. Post the truth and ashame the devil!
Receive with simplicity everything that happens to you.” ― Rashi

VituVingiSana
#49 Posted : Friday, May 10, 2013 10:03:18 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
dunkang wrote:
On the other hand, what would have the 25p.c rate hike meant to the entire economy?
The increase was for the fixed charge not the entire bill. The KES/USD has gone from the low 70s to 84 [upto 107] since the rate update. The USD lenders don't give a ruto discount.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#50 Posted : Friday, May 10, 2013 10:09:10 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
2012 wrote:
I think this is a good challenge for KPLC. I'm a shareholder and I also think KPLC needs to be more efficient and expand. Only 6% of Kenya's population has electricity after 50 years of independence with KPLC in existence.
KPLC needs a manager and not an engineer at the helm and you'll see that's why Kengen is doing well and KPLC is not.
Kenya has a population of 44mn. 6% x 44mn = 2.64mn

Most people in urban Nairobi, Mombasa, Kisumu, Thika, Malindi, Eldoret, Nakuru, Nyeri, Voi, Magadi, etc have access to electricity. The urban population of the towns I have mentioned exceed 2.64mn. There are many other towns & rural areas not mentioned which have access to electricity including Kakamega, Webuye, Lamu, Garissa, Moyale, Muranga, Namanga, Bungoma, etc...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
streetwise
#51 Posted : Friday, May 10, 2013 10:40:20 AM
Rank: Veteran


Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
Evey day i hear a complain about power blackout and wonder how does KPLC expect to make money if they are not delivering the product. Effieciency is very key here..why is power from countries around Kenya cheaper even when we are importing it. I think there is for sure somethinh wrong here and I think Ruto is saying put your house in order and come out with a proposal that talks of profitability not sealing holes due to ineffiecincy whick kenyans having been paying for thoughout the years
Kaigangio
#52 Posted : Friday, May 10, 2013 11:12:39 AM
Rank: Elder


Joined: 2/27/2007
Posts: 2,768
mkonomtupu wrote:
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public


are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!!

the power firm has been declaring billions of shillings of profit over the last couple of years.
...besides, the presence of a safe alone does not signify that there is money inside...
Obi 1 Kanobi
#53 Posted : Friday, May 10, 2013 11:39:43 AM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
mkonomtupu wrote:
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public


WR is spot on, it may sound like a road side declaration, but the guy is right about the inefficiencies at KPLC.

Example, KenGen generates 140 MW @Kipevu 3 and we pay for it but because KPLC/KETRACO delayed in laying out the transmission lines or connecting consumers at the coast, the power goes to waste as it cannot be deployed, now sample that.

Have you ever reviewed the tarrif setting for this companies, they are practically compensated fro all their costs and are even shielded against market forces (e.g. Forex exchange) so they should not be making losses, but no, KPLC probably looses as much as 30% of the energy it pays for through grid losses and another 20% through blackouts. KPLC risks are not touched by any reinsurer so there again you can imagine the insurance underwriting costs they have to pay.

This company really needs to step up, it has never transitioned from a parastatal to the private sector.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
mkonomtupu
#54 Posted : Friday, May 10, 2013 11:59:58 AM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
Obi 1 Kanobi wrote:
mkonomtupu wrote:
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public


WR is spot on, it may sound like a road side declaration, but the guy is right about the inefficiencies at KPLC.

Example, KenGen generates 140 MW @Kipevu 3 and we pay for it but because KPLC/KETRACO delayed in laying out the transmission lines or connecting consumers at the coast, the power goes to waste as it cannot be deployed, now sample that.

Have you ever reviewed the tarrif setting for this companies, they are practically compensated fro all their costs and are even shielded against market forces (e.g. Forex exchange) so they should not be making losses, but no, KPLC probably looses as much as 30% of the energy it pays for through grid losses and another 20% through blackouts. KPLC risks are not touched by any reinsurer so there again you can imagine the insurance underwriting costs they have to pay.

This company really needs to step up, it has never transitioned from a parastatal to the private sector.


"The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do."
Time will tell...
mlennyma
#55 Posted : Friday, May 10, 2013 12:50:31 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,183
Location: nairobi
The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver.
"Don't let the fear of losing be greater than the excitement of winning."
dunkang
#56 Posted : Friday, May 10, 2013 1:15:11 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
mlennyma wrote:
The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver.

Exactly. Its nothing to do with rates. Its all about corruption and unwillingness of the administration to rein in!

Example, at the Mathare and Huruma Slums in Nairobi, almost 75p.c of the houses have KPLC electricity that each pay 100/- monthly to protected cartels. (fyi i grew up there and moved out 12 years ago). So, instead of KPLC ensuring they collect the money themselves at a special rate instead of this criminals, they hike rates to the law abiding customers and eat with the IPPs.

They should learn from the water sector failures, you make the rates unaffordable, guys tamper with your systems.
Receive with simplicity everything that happens to you.” ― Rashi

Rahatupu
#57 Posted : Friday, May 10, 2013 1:30:53 PM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
Kaigangio wrote:
mkonomtupu wrote:
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public


are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!!

the power firm has been declaring billions of shillings of profit over the last couple of years.



@Mkonoempty, Look at the BIGGER picture and not your selfish dividends on performance of the KPLC share. How do you explain how imported power from Ethiopia could be 10 times cheaper? Until the darkness company discovers "Who moved their cheese" they will clueless for a long time.
mlennyma
#58 Posted : Friday, May 10, 2013 1:32:32 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,183
Location: nairobi
@dunkang,this guys are bribed to come and install power in your house,in lunga lunga,sinai,mukuru,reuben,njenga and nearly all slums you can think tapping power is legal business,with the cartel and kplc staff sharing the loot...the staff alert the cartel when they will visit the sites...pathetic if they expect to get money.
"Don't let the fear of losing be greater than the excitement of winning."
VituVingiSana
#59 Posted : Friday, May 10, 2013 1:57:51 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
dunkang wrote:
mlennyma wrote:
The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver.

Exactly. Its nothing to do with rates. Its all about corruption and unwillingness of the administration to rein in!

Example, at the Mathare and Huruma Slums in Nairobi, almost 75p.c of the houses have KPLC electricity that each pay 100/- monthly to protected cartels. (fyi i grew up there and moved out 12 years ago). So, instead of KPLC ensuring they collect the money themselves at a special rate instead of this criminals, they hike rates to the law abiding customers and eat with the IPPs.

They should learn from the water sector failures, you make the rates unaffordable, guys tamper with your systems.
What do you want KPLC to do? They cannot go into the slums without police protection. And I don't mean the 'kawaida' police but GSU. The government [security forces] need to be involved in ensuring vandalism is stamped out.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#60 Posted : Friday, May 10, 2013 2:12:28 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
Rahatupu wrote:
Kaigangio wrote:
mkonomtupu wrote:
i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public


are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!!

the power firm has been declaring billions of shillings of profit over the last couple of years.


@Mkonoempty, Look at the BIGGER picture and not your selfish dividends on performance of the KPLC share. How do you explain how imported power from Ethiopia could be 10 times cheaper? Until the darkness company discovers "Who moved their cheese" they will clueless for a long time.
Are you sure that electricity prices in Ethiopia is 10% of what KPLC charges? BTW, KPLC is a distributor which pays about 8cents [or more] to many producers e.g. IPPs. A country may choose to subsidize electricity as Egypt does or have huge natural resources like Ethiopia does. Kenya has 2 major rivers but compared to the Blue Nile [Ethiopia] or Nile [Egypt] are but piddling streams. We have no coal, LNG or oil [production] thus little access to cheap thermal power.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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