Am sure many commenting have not read the article but the writer gives a very good hypothesis. The accountants and auditors of the 2 firms need to have a seating with the parliamentary committee on energy. Something is a miss
Quote:the amount Kenya Power says it paid out is more than what KenGen says it received.
In total, the cumulative difference between the two figures over the 10-year period comes to over Sh26bn! This represents a shortfall of about 12 per cent.
I really look forward to an explanation of this persistent difference in the payments and receipts. It is quite troubling.
Going back to the original question about the fixed charge, I did a quick test of my own hypothesis. Kenya Power started the financial year with 3.7 million domestic customers and closed with 4.6 million. Thus, the median number was about 4.1 million. Each one of them was charged Sh150 per month, making a total of Sh622 million or about Sh7.4bn in the year.
In the same period, KenGen declared that it received Sh21.7bn as “Capacity Charges” – its “fixed charge” to Kenya Power. This amount is much larger than the Sh7.4bn collected by Kenya Power.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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