mlennyma wrote:Pesa Nane wrote:Govt. directs power connection fees lowered from Ksh. 35,000.00 to Ksh. 15,000.00
"Those who still cannot afford the lowered fees, Kenya Power will be directed to allow payment in installments"
its kenya power which should be pushing for low connection fees to get customers not gvt forcing them.
1) Who pays the subsidy?
2) Let's say the average marginal profit from each consumer is 200/month [Please no ignorant comments that Revenues = Profits] then KPLC recovers the 20,000 after 100 months. In the meantime, there is a cost to the initial 20,000 (interest & opportunity).
3) Even those who can afford to pay the 35,000 will back off & apply for the 15,000 coz it is logical to do so!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett