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Kenya Power HY 2019
Ericsson
#241 Posted : Sunday, July 26, 2020 9:33:25 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,882
Location: NAIROBI
kmucheke wrote:
Save Kenya Power from collapse by Jaindi Kisero in BD.


Quote:
The previous board was mainly composed of cronies of influential politicians. Still, the problems at Kenya Power are so deeply ingrained.

The priority of priorities in Kenya Power is addressing balance sheet issues. The shareholders must to something very urgently to clean the company’s balance sheet.

Kenya Power is the only power off-taker for both KenGen and for the independent power producers. When it continues to ail, the ramifications are felt across the board.

Indeed, part of the reason Kenya Power is where it is today is because it — for political reasons — finds it difficult to operate on the basis of full-cost recovery. Failure to subsidise the social tariff has been a big impediment.

The new team can scale up drastically in reducing transmission losses, in reducing theft of electricity by consumers, in collecting debts and in curtailing corruption in procurement.

A great deal can be achieved by eliminating fiefdoms in the ranks of the workforce left by the out-going management and board and in re-introducing clear lines of command in the company. The list of what needs to be done to improve the company’s fortunes is long indeed.

...inject capital to recapitalise the company and consider forging an alliance with a strategic partner that can bring technical expertise and management.

In the long term we must debate whether it really makes sense for Kenya Power and other strategic commercial State corporations to remain listed on the stock exchange.

A monopoly that rakes in more than Sh130 billion a year in revenues, is broke and is now tottering dangerously.

If the government does not take drastic measures to bail out Kenya Power from its current situation, the company will collapse.


All the above issues are not new and the board has its work cut out.

However there still remains the problem of external political interference.


The board is a passive one,which is least involved.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#242 Posted : Sunday, July 26, 2020 10:18:29 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,882
Location: NAIROBI
Kenya power has disconnected power to the whole of Makongeni.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Extraterrestrial
#243 Posted : Monday, August 03, 2020 11:01:39 AM
Rank: Member


Joined: 11/17/2018
Posts: 150
Location: Mars
Interesting interview from Bernard Ngugi. He does inspire confidence. There are clearly concerted efforts to turn the utility around.

https://www.youtube.com/watch?v=y3SYYUsflsY
kmucheke
#244 Posted : Wednesday, August 05, 2020 4:56:22 PM
Rank: Member


Joined: 3/16/2019
Posts: 174
I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.

Even where there is no corruption KP officials should be found culpable for negligence.

This is why power bills will always be high and KP will never stop hemorrhaging money.


Power utility firms should avoid costly trespass suits

Quote:
The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.

In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.

This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.

Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.

Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.

Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.

Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.

Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same.
Monk
#245 Posted : Wednesday, August 05, 2020 5:44:16 PM
Rank: Member


Joined: 7/1/2009
Posts: 184
kmucheke wrote:
I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.

Even where there is no corruption KP officials should be found culpable for negligence.

This is why power bills will always be high and KP will never stop hemorrhaging money.


Power utility firms should avoid costly trespass suits

Quote:
The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.

In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.

This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.

Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.

Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.

Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.

Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.

Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same.


@kmucheke That's a very unfortunate mindset of blaming the victim; you seem to believe government & parastatal officials never overstep/abuse their powers - Lands, KRA, CBK, KEBS, Police, Judiciary etc. CBK recently did just that...should we blame Safaricom/Banks?
Extraterrestrial
#246 Posted : Sunday, August 16, 2020 7:18:20 AM
Rank: Member


Joined: 11/17/2018
Posts: 150
Location: Mars
EPRA has increased the recoverable system losses from 14.9% to 19.9% (+500bps) retrospectively from 1st July 2020.

This comes after GoK gave the loss making utility a one year moratorium on loan repayments (on-lent).
Ericsson
#247 Posted : Sunday, August 16, 2020 7:29:11 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,882
Location: NAIROBI
Extraterrestrial wrote:
EPRA has increased the recoverable system losses from 14.9% to 19.9% (+500bps) retrospectively from 1st July 2020.

This comes after GoK gave the loss making utility a one year moratorium on loan repayments (on-lent).

Will it help in encouraging demand and bringing manufacturing back to the country.
Over taxing a small base instead of coming up with policies that encourage heavy consumers to take up the excess power.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kmucheke
#248 Posted : Sunday, August 16, 2020 7:31:27 PM
Rank: Member


Joined: 3/16/2019
Posts: 174
Monk wrote:
kmucheke wrote:
I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.

Even where there is no corruption KP officials should be found culpable for negligence.

This is why power bills will always be high and KP will never stop haemorrhaging money.


Power utility firms should avoid costly trespass suits

Quote:
The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.

In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.

This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.

Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.

Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.

Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.

Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.

Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same.


@kmucheke That's a very unfortunate mindset of blaming the victim; you seem to believe government & parastatal officials never overstep/abuse their powers - Lands, KRA, CBK, KEBS, Police, Judiciary etc. CBK recently did just that...should we blame Safaricom/Banks?

@Monk Apologies if i've come across as blaming genuine victims. Note that I've used "victims" in quotes to differentiate from genuine victims who have suffered at the hands of KP and deserve compensation.

Also note my second paragraph asking for punishment on errant officials as prescribed by the law irrespective of which institution they come from.

My aim was to highlight a trend that is well documented on undeserving individuals being compensated using public funds at the expense of taxpayers. Take SGR compensation that landed NLC officials in court.
Ericsson
#249 Posted : Tuesday, August 18, 2020 5:27:14 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,882
Location: NAIROBI
https://www.businessdail...0310-cky121z/index.html

Kenya Power is facing increased burden of paying for idle electricity as power generators increase production to five-month high amid reduced consumption by homes and businesses in the wake of Covid-19.

Latest figures from the Energy and Petroleum Regulatory Authority (Epra) shows that power producers such as KenGen increased their supply to Kenya Power to 980.33 million kilowatt-hours (kWh) in July.

The supply is a 7.4 percent rise from 912.89 million kWh and is the highest since January output of 986.08 million kWh, piling pressure on Kenya Power given the subdued demand.

Kenya Power has since April been unable to sell about 24 percent of the power or 214 million kWh it bought from generators like KenGen.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
McGill
#250 Posted : Tuesday, August 18, 2020 6:27:39 AM
Rank: New-farer


Joined: 8/1/2019
Posts: 33
KaunganaDoDo wrote:
Swenani wrote:
Elephant Man wrote:
So if it all doom and gloom for KPLC, is this not a threat to Kengen, KPLC being their largest customer?


No, it's not doom. Obiero being my role model, I'm hoping to buy more KPLC shares in the next three months anticipatinng to have 100% return.

Watch and learn


Please dont buy anymore now until 2019/20 Financials are out...you will hurt yourself


When do they come out?
Extraterrestrial
#251 Posted : Tuesday, August 18, 2020 7:09:07 AM
Rank: Member


Joined: 11/17/2018
Posts: 150
Location: Mars
Ericsson wrote:
https://www.businessdailyafrica.com/corporate/companies/Kenya-Power-faces-costly-burden-of-idle-electricity/4003102-5610310-cky121z/index.html

Kenya Power is facing increased burden of paying for idle electricity as power generators increase production to five-month high amid reduced consumption by homes and businesses in the wake of Covid-19.

Latest figures from the Energy and Petroleum Regulatory Authority (Epra) shows that power producers such as KenGen increased their supply to Kenya Power to 980.33 million kilowatt-hours (kWh) in July.

The supply is a 7.4 percent rise from 912.89 million kWh and is the highest since January output of 986.08 million kWh, piling pressure on Kenya Power given the subdued demand.

Kenya Power has since April been unable to sell about 24 percent of the power or 214 million kWh it bought from generators like KenGen.


Very misleading article that combines different sources at different points in time to push a narrative derailing the fact that demand is recovering.

The excess burden for KPLC is in the capacity charges. Why and how would they evacuate something that they can't sell?
kawi254
#252 Posted : Tuesday, August 18, 2020 12:34:42 PM
Rank: Member


Joined: 2/20/2015
Posts: 384
Location: Nairobi

Excerpts of Ormat [Olkaria III] Q2 2020 Earnings Call Transcript touching on KPLC:

Quoting Doron Blachar -- Chief Executive Officer
....
"
1. The fourth majeure letter we received from KPLC in April has an immaterial impact on our revenue as agreed by KPLC....So as you said, we have a long-term contract with KPLC, end of last quarter we received the force majeure letter and we analyzed it as immaterial. This quarter, we have discussed with KPLC, and they actually agreed to our position that is totally immaterial and it's already in the numbers. We don't have any discussions with the KPLC on our PPA, on the pricing. There's some other PPAs that are much higher than ours. And the only discussion we had was on the force majeure that was totally immaterial.

2. KPLC has been slowing its payments for the last, I think, two years, but they keep on paying.

3. Power generation in our power plants declined by 4.7% to 1.44 million megawatt hours in the second quarter of 2020. This decline is attributable to several factors; including the curtailment of our generation in Olkaria power plant in Kenya
"



Below from ORMART's Q1 earnings call for the period ending March 31, 2020:

"On April 17 we received from KPLC, our customer in Kenya, a notice declaring a force majeure event due to the impact of COVID-19. In their letter, they are claiming to reduce the Olkaria complex contracted capacity from 150 megawatts to 133.9 [Phonetic] megawatts. We believe that the notice will not have a material impact on our expected revenue."

"First of all in Kenya, we have both capacity payments and energy payments. And the capacity payments is the vast majority of the income coming from the power plant. The capacity payment remains as it is on those curtailments, and the thing that it's not paid is the energy. On the 150 megawatts to 133.9 megawatts drop, we are still negotiating and discussing with the utility if they have the ability to have to make this drop, because according to the contract they don't have it. So our expectation is it eventually it will be a non-significant drop on revenue coming from the power plant."

kmucheke
#253 Posted : Monday, September 07, 2020 2:48:18 PM
Rank: Member


Joined: 3/16/2019
Posts: 174
Kenya Power cuts blackouts duration by half on upgrades

Quote:
Kenya Power is said to have invested some Sh70 billion improving its distribution infrastructure by constructing new substations and undergrounding of power lines to reduce interferences that cause outages.

A 2017 study on the electricity reliability in Kenya found that Kenya Power was losing more than Sh2 billion per year from power outages.

The study by the University of Massachusetts found that most outages were caused by faults with just a few being planned by Kenya Power.


This is good news and commendable.

At the moment investment in power should be in upgrading the distribution infrastructure and not adding new power plants.

A decrepit power distribution infrastructure is akin to supplying water with leaking pipes.
VituVingiSana
#254 Posted : Monday, September 14, 2020 3:38:18 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,216
Location: Nairobi
https://www.businessdail...800-14nte8oz/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
moneydust
#255 Posted : Tuesday, September 15, 2020 12:44:57 AM
Rank: Member


Joined: 1/31/2007
Posts: 302
VituVingiSana wrote:
https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way
Metch
#256 Posted : Tuesday, September 15, 2020 12:40:00 PM
Rank: Member


Joined: 12/22/2015
Posts: 209
Location: Mombasa, Kenya
moneydust wrote:
VituVingiSana wrote:
https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way


The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup
Start!
mlennyma
#257 Posted : Tuesday, September 15, 2020 12:57:05 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,052
Location: nairobi
Metch wrote:
moneydust wrote:
[quote=VituVingiSana]https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way


The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup

they have no where else to sell their power
"Don't let the fear of losing be greater than the excitement of winning."
Ericsson
#258 Posted : Tuesday, September 15, 2020 6:54:07 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,882
Location: NAIROBI
mlennyma wrote:
Metch wrote:
moneydust wrote:
[quote=VituVingiSana]https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way


The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup

they have no where else to sell their power


The tough question is how will Kenya Power get out of its financial hole.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
mlennyma
#259 Posted : Wednesday, September 16, 2020 11:25:56 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,052
Location: nairobi
Ericsson wrote:
mlennyma wrote:
Metch wrote:
moneydust wrote:
[quote=VituVingiSana]https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way


The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup

they have no where else to sell their power


The tough question is how will Kenya Power get out of its financial hole.


Your answer is in KQ
"Don't let the fear of losing be greater than the excitement of winning."
Ebenyo
#260 Posted : Monday, September 21, 2020 8:24:11 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,874
Location: Kitale
Ericsson wrote:
mlennyma wrote:
Metch wrote:
moneydust wrote:
[quote=VituVingiSana]https://www.businessdailyafrica.com/corporate/companies/Kenya-Powers-debt-to-KenGen/4003102-5622800-14nte8oz/index.html


This company is soon going the Kenya Airways way...it's only lucky that it's too big to fail otherwise it would be headed the Uchumi way


The tragedy is pulling KEGN down with it.
Soon we'll buy KEGN for a song so cheap I wont mind the long wait to recoup

they have no where else to sell their power


The tough question is how will Kenya Power get out of its financial hole.



Gok should reduce its shareholding from the current 50% to 25%.That way management of the company will improve and finances will be healthy.
Towards the goal of financial freedom
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