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KPLC V/s Public interest
selah
#1 Posted : Tuesday, March 16, 2010 8:28:06 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Yesterday the govt said it can not ask KPLC to lower cost of electricity since it only controls forty something percent now my question is how can the govt let such an important sector be dectated by a private enterpriseits

just last week, a company which manufactures bottles for cocacola and other companies threatened to relocate due to energy cost
and in industrial area I am informed companies are relocating to Uganda and other countries where the cost of production is manageable.

The funny thing is KPLC does not generate power and so it has no reason to inflate electricity cost.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
guru267
#2 Posted : Tuesday, March 16, 2010 8:35:12 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@selah KPLC said it needs to maintain a comfortable profitabilty of 10%-12% of total assets for proper sustainability... its current profits are way below this as they are about 6.8% of total assets... thats the reason for cost inflation
so if anything tariffs are likely to edge higher in the future...
Mark 12:29
Deuteronomy 4:16
muganda
#3 Posted : Tuesday, March 16, 2010 8:35:41 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
KPLC outrageous! Public interest will triumph in the end; it always does after alot of pain. And the government is culpable for perpetuating the monopoly.

Is the company genuinely making profit, or are we just paying for their inefficiencies?
2012
#4 Posted : Tuesday, March 16, 2010 8:38:12 AM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
selah wrote:
Yesterday the govt said it can not ask KPLC to lower cost of electricity since it only controls forty something percent


I think that right there is a load of bull! Remember when the same idiot was talking about regulating the oil industry because it is 'a very important sector'? 30% share holding is more than enough to call the shots in traded companies so let them not try to hoodwink us.

From that statement yesterday I can foresee another scandal coming up. These idiots are just looting us dry to fund the 2012 campaigns.

BBI will solve it
:)
Horton
#5 Posted : Tuesday, March 16, 2010 9:14:40 AM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
2012 wrote:
selah wrote:
Yesterday the govt said it can not ask KPLC to lower cost of electricity since it only controls forty something percent


I think that right there is a load of bull! Remember when the same idiot was talking about regulating the oil industry because it is 'a very important sector'? 30% share holding is more than enough to call the shots in traded companies so let them not try to hoodwink us.

From that statement yesterday I can foresee another scandal coming up. These idiots are just looting us dry to fund the 2012 campaigns.



Very true 2012....

They blame oil marketers of making too much money from us, yet most of these oil marketers are barely making 1% NM while the govt is hording over 40bob in taxes and levies from fuel.

The energy ministry needs to adapt an "equity" model and reduce taxes make their cash from volumes rather than from outrageous taxation regimes...
selah
#6 Posted : Tuesday, March 16, 2010 10:43:20 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
This govt should liberalise this sector just like they did with telecommunication by licensing more distributors.

If more players were allowed in this sector I belive we would enjoy competitive pricing just like we are enjoying in telecommunication.

The other Option is for the govt to form a parastatal that will run the distribution thereby subsidising electricity
this process, I belive, will attract more investors and raise our competitive edge.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
digitek1
#7 Posted : Tuesday, March 16, 2010 12:04:59 PM
Rank: Veteran


Joined: 2/3/2010
Posts: 1,797
Location: Kenya
Why then do kplc have blue number plates
I may be wrong..but then I could be right
2012
#8 Posted : Wednesday, March 17, 2010 2:37:20 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
digitek1 wrote:
Why then do kplc have blue number plates


GREAT QUESTION!!
You'd expect them to have pink, purple or whatever colour plates they choose since they are beyond Govt. control.

BBI will solve it
:)
mukiha
#9 Posted : Wednesday, March 17, 2010 2:59:04 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
selah wrote:
This govt should liberalise this sector just like they did with telecommunication by licensing more distributors.

If more players were allowed in this sector I belive we would enjoy competitive pricing just like we are enjoying in telecommunication.

The other Option is for the govt to form a parastatal that will run the distribution thereby subsidising electricity
this process, I belive, will attract more investors and raise our competitive edge.


@selah: think hard about it; suppose you had the money and were invited by the GoK to be the second power distributor; how would you go about competing with KPLC?

Would you start laying new distribution lines? If so where would you lay them [since KPLC already owns all existing way-leaves]?

Somethings are not as easy as they are made to sound.

The process of libralising power transmission and distribution has already started with the establishment of KETRACO - a transmission company.

Transmission means getting the power from the generating stations to the local substations. distribution means from the substation to the consumer.

At the moment KPLC is doing both. Eventually, KETRACO will take over transmission and KPLC will be left with distribution alone.

that way, other companies can come in and bid for distribution contracts for newly opened frontiers, e.g., the many residential developments coming up in Athi-River and Kitengela areas.

Remember that several years back, KPLC was doing everything from generation to transmission and distribution. Then KenGen was hived off and now we have several competing power generators eventhough KenGen still controls over two thirds of the market.

Which reminds me of the telecoms that you are using as an example: SCOM has over 70% of the market, and it is not the most efficient nor the cheapest!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#10 Posted : Wednesday, March 17, 2010 3:08:20 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
There was a nice feature on KTN last night, by Rama Nyang - "Electrifying Ignorance"

Wish you watched it
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#11 Posted : Wednesday, March 17, 2010 3:26:05 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
At the end of the day, the minister for energy was not forthright in saying that GoK cannot compel KPLC to reduce tariffs since it doesn't own the company.

GoK doesn't need to own the company to control the tariffs... tariffs are regulated by ERC - a wholly owned government body!!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
muganda
#12 Posted : Wednesday, March 17, 2010 3:28:21 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Mukiha wrote:
Are high power bills a result of KPLC inefficiency? No! Half of the bill goes to Fuel-cost adjustments. These arise from the use of emergency power producers who run diesel generators. Thus the choice we have is cheap power that is not enough for everyone, or expensive power that is enough.

KPLC does NOT produce power! So it is unfair to blame it for the added cost.


@Mukiha, your input in the morning was good. It left me dumbstruck for hours. And like a slap or joke told in the morning, my reaction is 6 hours too late... smile

Catch my timeline:
1996: Power is expensive I shout at KPLC
2006: Power is expensive I shout at Kengen
2010: Blackout in Nairobi I don't know whether to shout at KPLC/Kengen/ KETARCO

Only thing in common is government and we're screwed. In fact, KPLC, a customer facing entity providing poor service has continually morphed to my detriment. I deal with the same person but they create more and more people for me to blame.

If KPLC is serving me and I want cheaper power, they should source it elsewhere. That's what would happen if I could choose between KPLC and another provider.



So an analogy perhaps: If Safaricom currently serving me decides to sell it's network to Nokia-Siemens then comes smiling with the line 'We are keen to be of service but don't blame us for congestion'

I'd move faster than you could say 'YU'
karuoth
#13 Posted : Wednesday, March 17, 2010 4:16:09 PM
Rank: Member


Joined: 10/30/2007
Posts: 3
mukiha wrote:
There was a nice feature on KTN last night, by Rama Nyang - "Electrifying Ignorance"

Wish you watched it



The energy barons at Nyayo house should come clean. They regulate the policy and ERC fix the pricing structure. KPLC plays by the rules set.

Why are they not in a hurry to retire the diesel powered emergency plants despite the rains?
We, consumers buy the diesel they burn and this is most expensive cost on the bill far much bigger than the unit cost of power that lands into KPLC Books.

The heat should be turned on the generators, KPLC is just a retailer.
Horton
#14 Posted : Wednesday, March 17, 2010 6:53:46 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
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