I said it, anybody expecting any change is just dreaming, cost of fuel cannot be going up and expect cost of electricity to start going down...huyu jamaa is yet to touch on the geothermal exploration company set up to drill for geothermal energy fully paid for by government...like ketraco
They are the invincibles. They have ensured you have no electricity even though you live in the city, a short distance away from a major highway, and a few footsteps from a high-voltage transmission line.The big question is ,who are these people that benefit from these entities ?
Don't tell me you've also fallen for that lame IPPs scapegoat. As an accountant/auditor, tell us what would be the cost if we did away with those IPPs, holding all else constant.You're wrong. The high cost of power is not because of cost of fuel. It's greediness of IPPs especially disel ones.
@Aviator hii story ya stima unakuwanga the outlier wa kijiji.
What is it then that you know and we do not? You just might eliminate our ignorance ama pia wewe uko connected (pun might be intended) to the beneficiaries?
Ni kama unga hutoka kwa one of the IPPs.@Aviator hii story ya stima unakuwanga the outlier wa kijiji.
What is it then that you know and we do not? You just might eliminate our ignorance ama pia wewe uko connected (pun might be intended) to the beneficiaries?
Don't tell me you've also fallen for that lame IPPs scapegoat. As an accountant/auditor, tell us what would be the cost if we did away with those IPPs, holding all else constant.
@Aviator hii story ya stima unakuwanga the outlier wa kijiji.
What is it then that you know and we do not? You just might eliminate our ignorance ama pia wewe uko connected (pun might be intended) to the beneficiaries?
hata mimi nangojea @Aviator anichanue why , 'coz njega has put forth his arguments which are backed by data whether wrong or right it makes sense to counter his by facts ,let everyone be in the know, what we commoners are getting from the government is a taskforce after task force but still the bills are high.
Ni kama unga hutoka kwa one of the IPPs.
Allow me to reply wholesale.The solar and wind IPPs are charging 7bob per kilowatt hour. The diesel ones are charging an arm and a leg. Those diesel ones are the reason for the high cost of power. GOK taskforce report wants the cost brought to 8bob.
He he he he he. Have you factored that the diesel IPPs ALSO make us pay the fuel charge AND foreign exchange fees? Check your bill.They can be done away with, and that will bring the cost down by 3 bob.
Is that what we are looking for?
KP pqys the IPPs and passes the bill in form of fuel charges, etc.He he he he he. Have you factored that the diesel IPPs ALSO make us pay the fuel charge AND foreign exchange fees? Check your bill.
A total rip-off................
He touched on GDCI said it, anybody expecting any change is just dreaming, cost of fuel cannot be going up and expect cost of electricity to start going down...huyu jamaa is yet to touch on the geothermal exploration company set up to drill for geothermal energy fully paid for by government...like ketraco
1 question teacher, huyu njenga alishasema mahali ati we are currently buying power at 16bobAllow me to reply wholesale.
Am sure you are now familiar with this table.
View attachment 45278
Kenya Powerless bought majority power from Kengen at 5.48, but because of the expensive IPPs, the average cost rose to 8.2. Any layman will tell you that if the IPPs are out of the picture, then KP would buy at 5.48, which is roughly 3 bob less. So, if we terminated all the agreements, then the price from KP to the consumer would reduce from the current 25 bob a unit to 22. Is that the kind of reduction we are talking about? For now, let me not dwell on the role of IPPs in the entire chain. That calls for a thread on its own, but they are very important. Clearly, the high cost is not driven by IPPs but KP.
On the role of KETRACO, that is just seperation of duties. The mandate of KP is to supply power to the consumer, and we are all in agreement on "how reliable their services have been". Think of how many blackouts you've experienced in the past month, and look at their causes. Clearly, KP is overwhelmed by their distribution network. Now add them the load of the national grid, which is run by KETRACO. You would be having power failure every day on a national scale. KETRACO happens to be one of the most efficient service providers. Very few incidents of power failure have been attributed to a failure of the national grid.
My maths are simple.
Buy power from producers at 8bob. Pay KETRACO 2 bob to evacuate it to Kenya Powerless. KP makes 4 bob profit selling it. That's 14 bob. Add taxes 2 bob. That is 16 bob, and everyone is happy.
The reason it is 25 bob is because KP doesn't want to get a fair margin of 4 bob. They want a full 10 bob if not more, far much more than the producer themselves. Just like the potato brokers in Marigiti who buy potato's at 100 from farmers and sell to hoteliers at 4000.
The only solution is to allow a second distribution company to compete with Kenya Power. Let the new distributor work out whatever profit they see fair and pass the benefits to the consumer.