KPLC will soon drag kenya to darkness

[RV Pundit]

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They are going bankrupt. Time to restructure and split it.
https://nation.africa/kenya/business/kenya-power-in-whopping-91pc-profit-plunge-1933996

[Arcadian_Dreamer]

Too big and too vital to fail.

Scaremongering.

[RV Pundit]

That is why it need to be restructured and split - to reduce the systemic risk on the economy - like was previously done - when Kengen was bundled out. It's kaput - with huge debts. Now we need many small KPLC - so they can compete somehow.

Now a broke KPLC will slow down everyone - they won't be able to replace transformers or maintain lines or name it - and it will be blackouts.

Too big and too vital to fail.

Scaremongering.

[Arcadian_Dreamer]

That is why it need to be restructured and split - to reduce the systemic risk on the economy - like was previously done - when Kengen was bundled out. It's kaput - with huge debts. Now we need many small KPLC - so they can compete somehow.

Now a broke KPLC will slow down everyone - they won't be able to replace transformers or maintain lines or name it - and it will be blackouts.

Yep, I agree. It should be split and restructured. Bigness is a handicap.

[RV Pundit]

They are already struggling with operational issues - claiming sijui China cannot supply transformer due to COVID-19 - which is nonsense. They are broke. If you lose a transformer - you might stay in darkness for quite some time.

Yep, I agree. It should be split and restructured. Bigness is a handicap.

[hk]

The genesis of KPLC troubles can be traced to jubilee 1st term policies. Mainly increase of electricity generation to 5000 megawatts while country only consuming less than 3000. KPLC is forced to buy excess capacity. Then the disastrous universal electricity connection irrespective of consumers' ability to afford installation and usage. Now we have almost 1m idle connection that kplc has to maintain.
The solution is to allow generators to sell power directly to consumers especially the heavy consumers. The generators can pay for transmission and distribution.

[RV Pundit]

It never got to 5000mw - we stopped at 3000MW. And we consume about 2000MW - so there is excess capacity - but if you add 30% for transmission losses - KPLC really should not blame IPP. The over-capacity charge is very small.

The connection was also financed by World Bank and Kenya Gov  under Last Mile Program- so again lame excuse.

Heavy consumers - about 500 of them contribute to 80% of power consumption - so take them away and KPLC is more kaput.

Now that supply side issues have been resolved, the solution is to drive demand side by reducing the cost of electricity - we have Africa 2nd worst cost of per unit - at 22 cents usd. Ethiopia, Tanzania and name them are doing under 10 cents a unit. In fact most manufacturers are only able to function by developing their own captive power.

How do we reduce cost of electricity?

Start with KPLC itself behaving life a parastal instead of lean profit driven company - we may need MANITOBAs to come back and run it - or split it to induce competition.

2nd - Auction system for power purchase is needed asap - that way KPLC will buy the cheapest available source of power at anytime - and only buy expensive thermal power at peak hours.

3rd - Gov has to think about COAL - that Kitui coal - can give us cheap power if we burnt it. There is no power source as cheap as coal. We can produce power at less than 1 shilling a unit. In KTDA - firewood power is very cheap compared to having electric boilers - cost come to less than a dollar per unit of power produce.

So we need to tell enviromentalist to go to developed countries and switch their coal plants - and allow us to use the cheapest source of power. Otherwise we still cut trees for charcoal and firewood anyway - a more ecological danger - than mining coal and burning it.

Once we have reduce the cost of power - everyone will afford to use electricity to cook, bathe, - and consumption will go up. This is a price elastic commodity...it's not Unga.Safaricom never complains about poor kenyans - not affording internet or airtime - at right prize - they can afford.
 

The genesis of KPLC troubles can be traced to jubilee 1st term policies. Mainly increase of electricity generation to 5000 megawatts while country only consuming less than 3000. KPLC is forced to buy excess capacity. Then the disastrous universal electricity connection irrespective of consumers' ability to afford installation and usage. Now we have almost 1m idle connection that kplc has to maintain.
The solution is to allow generators to sell power directly to consumers especially the heavy consumers. The generators can pay for transmission and distribution.

[hk]

pundit,

Connecting poor Kenyans to electricity that can't afford to pay is what has partially contributed to KPLC losses. https://www.businessdailyafrica.com/corporate/companies/Connecting-poor-hands-Kenya-Power-Sh3bn-debt/4003102-4878676-bb1m98/index.html . Whether it was supported by World bank or not it has led to  increased operation cost. Build it and they will come doesn't work. https://www.cgdev.org/sites/default/files/if-you-build-it-will-they-consume-key-challenges-universal-reliable-and-low-cost.pdf
The priority should have been reducing cost of electricity not universal connection. Cheaper power would be the catalyst to drive up demand and usage.
Deregulation is the solution, allow kengen and other generators to sell directly to heavy users ,kplc and ketraco would earn small fee for the last mile connection.  Kplc or new distributors should be relegated to just ensuring connection and distribution.
Lastly kenya pipeline or other investor should build a gas pipeline from TZ and Mozambique to access cheap natural gas for electricity generation plus other household and industrial use.

[RV Kirgit]

Looks like it's right time KPLC, KQ, sugar companies and other moribund institutions are handed over to KDF

[hk]

Good news https://www.businessdailyafrica.com/bd/corporate/companies/kengen-now-plans-to-sell-power-direct-to-consumers-3209018 kengen to sell directly to consumers. The 2019 energy act should be enacted immediately . The ERC the regulator should be setting up parameters and charges to be paid to ketraco and kplc . Predictably keter thinks kengen or any IPP should install fresh infrastructure knowing that would make the act inoperable .

[RV Pundit]

KPLC would go bankrupt because it depend on 600 customers for 60% of revenue - you take those few big manufacturers - and they cannot survive. But also this will free economy from paying for long lopsided IPP agreements as bankrupt KPLC will have to negotiate those IPPS.

Good news https://www.businessdailyafrica.com/bd/corporate/companies/kengen-now-plans-to-sell-power-direct-to-consumers-3209018 kengen to sell directly to consumers. The 2019 energy act should be enacted immediately . The ERC the regulator should be setting up parameters and charges to be paid to ketraco and kplc . Predictably keter thinks kengen or any IPP should install fresh infrastructure knowing that would make the act inoperable .

[hk]

KPLC would go bankrupt because it depend on 600 customers for 60% of revenue - you take those few big manufacturers - and they cannot survive. But also this will free economy from paying for long lopsided IPP agreements as bankrupt KPLC will have to negotiate those IPPS.

KPLC is technically bankrupt already. Major power users are setting up alternative power sources, the dam has broken. Kplc will drag kengen to bankruptcy if it remains solely reliant on kplc. Liberalization of the energy sector is one of the major relief manufacturing sector and economy needs to grow. The beauty of Jubilee running down everything is that the only solution is a more freer liberalized, less regulated economy. 

[gout]

KPLC will frustrate it like safaricom has sat on mobile number portability.

The darkness is coming - blackouts will be lasting months. Last mile connectivity is lost for a decade.

IMF, AfDB have to read the riot act soonest - only them can disconnect the politically connected IPPs.

KPLC would go bankrupt because it depend on 600 customers for 60% of revenue - you take those few big manufacturers - and they cannot survive. But also this will free economy from paying for long lopsided IPP agreements as bankrupt KPLC will have to negotiate those IPPS.

Good news https://www.businessdailyafrica.com/bd/corporate/companies/kengen-now-plans-to-sell-power-direct-to-consumers-3209018 kengen to sell directly to consumers. The 2019 energy act should be enacted immediately . The ERC the regulator should be setting up parameters and charges to be paid to ketraco and kplc . Predictably keter thinks kengen or any IPP should install fresh infrastructure knowing that would make the act inoperable .

[RV Pundit]

Chance for it to be split into many small companies. That is what is missing. It foolhardy to allow them to hold economy ransom - if they go down - they go down with everyone. But if they were 3 companies - at least - part of the country will remain.

We don't need a monopoly in such critical sector.

KPLC is technically bankrupt already. Major power users are setting up alternative power sources, the dam has broken. Kplc will drag kengen to bankruptcy if it remains solely reliant on kplc. Liberalization of the energy sector is one of the major relief manufacturing sector and economy needs to grow. The beauty of Jubilee running down everything is that the only solution is a more freer liberalized, less regulated economy. 

[RV Pundit]

Once IMF come on board they will force reforms.
Force KPLC to sell their network to Ketraco - and get paid for that - to stay solvent.
All the high voltage lines should be owned by Ketraco - leaving them with 11kV or final distribution lines.
Also dump the IPPS - and go for auction - cheapest source of power - available -you pay the provider - pick you power from Ketraco lines
Force KPLC to be split into 3 companies - so they can compete - and then allow regional players - for example - you can have power company dedicated to electricity small town.
Kenyattas - mama ngina - are invested in KPLC - but with economy on the dogs - everyone will accept reforms.

This is what obtain in petroleum sector - with KPL owning the infrastructure - and distributors - focusing on selling and distribution.

KPLC will frustrate it like safaricom has sat on mobile number portability.

The darkness is coming - blackouts will be lasting months. Last mile connectivity is lost for a decade.

IMF, AfDB have to read the riot act soonest - only them can disconnect the politically connected IPPs.

[Fairandbalanced]

Let’s take a wild guess on which side of the jubilee govt, TNA or URP is in charge of the energy docket.

[RV Pundit]

This is Uhuru baby - Keter is figure head - otherwise all his men got fired - now PS is Njoroge (real cartel messing up the sector), MD for KPLC, Kengen and name them are all fellow kikuyus - but we don't see tribal inspired leadership shinning.

Let’s take a wild guess on which side of the jubilee govt, TNA or URP is in charge of the energy docket.

[KenyanPlato]

When we told Pundit that the last mile didn't make sense he screamed bloody murder. At that point his god ruto was getting rimmed by Uhuru daily so he was shinning like a newly hired maid. Now the results are here for him to see and he is screaming how it will turn kenya into darkness. The problem with Savants is that they never unfocus to see the big picture. They use their weird brain to do useless things like tell you which day Christmas 1901 was. My son has this habit where he can multiply a complex number in his head but he cannot focus on a simple task like cook an egg without burning it. I have hired a Sangoma to deprogram him. Pundit needs a Murogi to deprogram him from Ruto politics of poverty and darkness 

[Nefertiti]

  talk of blinkers. Of course this is Mobutu last-mile to stone-age villages, SGR-to- Narok & Naivasha wheat & flower farms and other "achievements." Jubilee 1 borrow & build is FAILED strategy that would break Kenya's back in this dark covid season. It is really good Uhuru kicked out the fool on the nick of time.

When we told Pundit that the last mile didn't make sense he screamed bloody murder. At that point his god ruto was getting rimmed by Uhuru daily so he was shinning like a newly hired maid. Now the results are here for him to see and he is screaming how it will turn kenya into darkness. The problem with Savants is that they never unfocus to see the big picture. They use their weird brain to do useless things like tell you which day Christmas 1901 was. My son has this habit where he can multiply a complex number in his head but he cannot focus on a simple task like cook an egg without burning it. I have hired a Sangoma to deprogram him. Pundit needs a Murogi to deprogram him from Ruto politics of poverty and darkness

[Nefertiti]

Pundit once proposed that greeneries along Nairobi-Nakuru strip be cleared to resettle poor folks in IDP camps. That the trees are cosmetic value compared to the "development" the peasants would bring. This man is an idiot not a savant.