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Kenya Power - what's the latest?
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Ericsson
#571 Posted : Wednesday, November 10, 2021 8:04:45 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
https://www.businessdail...ower-substations-3613498
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kawi254
#572 Posted : Friday, November 12, 2021 10:33:24 PM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
1) Tsavo power (74 MW Kipevu II) PPA has run it's course, expired in September 2021 and KPLC has not purchased any units from Tsavo power in October 2021. You'd think the Fuel energy cost charge would go down but for November billing the FCC will be at highest figure of Ksh. 4.21

2) GAZETTE NOTICE NO. 2826 of 2016 dealing with the THE ENERGY ACT revoked


GAZETTE NOTICE NO. 2826 of 2016
(a) The Fuel Supply Agreements can be renegotiated to adjust the stock holding levels in light of the reduced dispatch of thermal power plants.
(b) The application for a change in the economic merit order of dispatch in the interconnected grid is disallowed. An exception will be allowed where the plants are run to maintain them in an operable mode as recommended by the manufacturer.
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My 2 cents
#573 Posted : Saturday, November 13, 2021 4:44:46 PM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,089
KPLC is in a real quandry. They have a Presidential directive to reduce power costs by 33% by end of 2021. (More than 30 Billion Savings). This was predicated on the assumption that it was possible to renegotiate PPA power costs. Now the taskforce discovers it is next to impossible to reopen the PPAs and renogiate contracts made in international courts.
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Ericsson
#574 Posted : Saturday, November 13, 2021 5:44:54 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
My 2 cents wrote:
KPLC is in a real quandry. They have a Presidential directive to reduce power costs by 33% by end of 2021. (More than 30 Billion Savings). This was predicated on the assumption that it was possible to renegotiate PPA power costs. Now the taskforce discovers it is next to impossible to reopen the PPAs and renogiate contracts made in international courts.


Buy more of Kengen power and less of the IPPs.
A path that is being avoided since the owners of IPPs are well connected individuals.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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My 2 cents
#575 Posted : Saturday, November 13, 2021 7:33:04 PM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,089
Ericsson wrote:
My 2 cents wrote:
KPLC is in a real quandry. They have a Presidential directive to reduce power costs by 33% by end of 2021. (More than 30 Billion Savings). This was predicated on the assumption that it was possible to renegotiate PPA power costs. Now the taskforce discovers it is next to impossible to reopen the PPAs and renogiate contracts made in international courts.


Buy more of Kengen power and less of the IPPs.
A path that is being avoided since the owners of IPPs are well connected individuals.


The PPAs come with a capacity charge i.e. KPLC pays some amount whether or not KPLC buys power from the PPAs.
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Ericsson
#576 Posted : Saturday, November 13, 2021 9:15:24 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
KPLC is in a real quandry. They have a Presidential directive to reduce power costs by 33% by end of 2021. (More than 30 Billion Savings). This was predicated on the assumption that it was possible to renegotiate PPA power costs. Now the taskforce discovers it is next to impossible to reopen the PPAs and renogiate contracts made in international courts.


Buy more of Kengen power and less of the IPPs.
A path that is being avoided since the owners of IPPs are well connected individuals.


The PPAs come with a capacity charge i.e. KPLC pays some amount whether or not KPLC buys power from the PPAs.


Yes they do but it will be cheaper than burning the heavy fuel and diesel to generate power
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kmucheke
#577 Posted : Monday, November 15, 2021 10:00:42 AM
Rank: Member

Joined: 3/16/2019
Posts: 313
State blocks Kenya Power from hiring McKinsey as adviser

After reading House of Lies : How Management Consultants Steal Your Watch and Then Tell You the Time I'm convinced that there is no way management consultants can save a poorly run, heavily indebted, corrupt ridden organisation like Kenya Power.

Furthermore are these management consultants experienced in running a business like KP in the environment and condition it is currently in? Yes McKinsey and BCG are known to hire some of the brightest and sharpest brains, but in this case just like KQ, I don't think anything will come out of it. But I maybe wrong...
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Ericsson
#578 Posted : Monday, November 15, 2021 10:29:37 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
kmucheke wrote:
State blocks Kenya Power from hiring McKinsey as adviser

After reading House of Lies : How Management Consultants Steal Your Watch and Then Tell You the Time I'm convinced that there is no way management consultants can save a poorly run, heavily indebted, corrupt ridden organisation like Kenya Power.

Furthermore are these management consultants experienced in running a business like KP in the environment and condition it is currently in? Yes McKinsey and BCG are known to hire some of the brightest and sharpest brains, but in this case just like KQ, I don't think anything will come out of it. But I maybe wrong...




There is no political will to turnaround Kenya power
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My 2 cents
#579 Posted : Monday, November 15, 2021 10:45:38 AM
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Joined: 6/2/2010
Posts: 1,089
KPLC only stands a chance if government divests out of it. Yet the government will never privatise this cash cow, even if it means sucking it to death.
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kmucheke
#580 Posted : Monday, November 15, 2021 11:04:18 AM
Rank: Member

Joined: 3/16/2019
Posts: 313
My 2 cents wrote:
KPLC only stands a chance if government divests out of it. Yet the government will never privatise this cash cow, even if it means sucking it to death.


Concession maybe, like Umeme. But this needs a very serious concessionaire not like the joke that was RVR.
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