This guy is brilliant. He understands his craft. This is the kind of people we want leading institutions such as Kenya Power that needs technocrats that are really good at what they do. Keep up the good work and help transform Kenya Power.
The qualification and capabilities is not in doubt, just like the KPC MD. it's when the operatives come demanding their pound of flesh that careers and reputations get ruined
I saw the CV of this man and said YES. A very good hire!! Watching this inteview is the reason I think CS Health should be a well accomplished doctor and a comptetent professor and the helm of Education.
Rather Impressive and informative. Engineer Siror's clarity of issues, and his concise manner of presentation offer a rather interesting and enlightening insight on Kenya's Electric distribution and uptake elements. His endearing touch of humour definitely go a long way in giving KPLC a human face. Should this filter down, who knows what effect this may have in enhancing KPLC's image? What arising pluses may come off of that?......Rather glad that Spice FM's crew took upon the initiative of engaging for a rather enlightening conversation. Perhaps more of the same would be in order!
Great conversation with Eng. I think the problem I am foreseeing here even from the "temporary" solutions that engineer says they are working on, is that there are a lot of short-term measures/solutions, examples; 1) The temporary Lesos sub-station, that will be a heavy price to pay for a temporary solution, why not just finish the Lesos sub- station as envisaged. 2) The temporary upgrade of the low voltage power line to Lodwar will result in the proper envisaged transmission lines to that area not being installed. These are the type of temporary quick fix solutions that brought us the high cost thermal IPPs. In Kenya Temporary solutions end up being left as the permanent answer until there is another public uproar. I agree fully with Eng. let the govt implement the least cost development plan, let the focus of our resources and investor mobilization be around its implementation. Again, great conversation, Eng. Dr. Siror has satisfied me as a very capable MD and CEO of KPLC.
The people of those areas can't do without power until the long term solutions came into place. Even when implementing short term solutions, you should keep in mind that the long terms solutions are also been implemented. The high cost of thermal IPPs was as a result of advice from the World Bank who forced Kenya to sign 30 yr power purchase agreements on the basis that foreign investors will not invest unless they get less years. Apart for the duration of the contracts, Kenya Power is forced to pay IPPs on the basis on installed capacity whether or not we use the power.
@@michaelotieno6524 Great insights, note that the areas mentioned where the short term solutions are being proposed already have power, the short term measures are meant to reduce the power losses and costs. I just think short term solutions then bring in laxity in implementation of the long-term solutions, because the costs of the short-term solutions have to be realised first before implementing long-term solutions or else you risk having over pricing due to high capital costs.
Kenya Power is not FORCED to pay for CAPACITY that comes with IPPs. That's what's negotiated for. Where in this world can you expect an investor to provide capacity to you, without an option of selling his products to anyone else other than you while you remain hoping that you will not be charged for capacity? The only time capacity is not charged for is where there are several outlets through which you can sell the product or if the buyer GUARANTEES to buy a certain minimum quantity of the product over a billing cycle. There are no free lunches. Providing guaranteed capacity costs money even if it is idle. It may only be absorbed when sales are guaranteed. The situation becomes complicated when you have only one buyer with several generators calling for its attention. In that case, then capacity must be paid for. What may be open for discussion is how much that capacity is charged at.
Engineer Siror I've never heard any MD with vast knowledge of Kenya power infrastructure as you have.Thank you for the clarification and we'll clarified points.God bless you sir proud to be part of kp family.
Electricity costs are high and more often than not the power is not even there. At the coast particularly, there are frequent blackouts. We bade farewell to these annoyances in the first term of late president kibaki. It seems Kenya Power is working hard to take us back there.
I love this theatre room cos finally the mysteries are demystified. In any case, electricy has been a expensive.. I hope Mr CS will consider solving the high cost as much as possible.
The transmission line from Ethiopia to Kenya is complete. Kenya signed a deal to import a minimum of 200mw with a capacity to import 2000mw if needed. Why cant we import this electricity which is 10times cheaper and replace the IPPS
The challenge lies in replacing IPPs. With some of the contracts running for up to 30 years with very costly early exit clauses, terminating them prematurely may not be the best option. Crooks invaded the sector and loaded KP with PPA contracts, some of which might not have been necessary. The way out of this mess is to stop getting into more PPAs and letting the current ones die as they come to their end.
His solution to current high tariffs ie for clients to consume more power in order to dilute the existing IPP effect in the cost formula (hence a lower tariff) cannot work unless a very low tariff is offered to say new industries to induce consumption at off peak while introducing measures to reduce both transmission losses (resistance resulting from line distance, thickness of line and cable metal used) and distribution losses (illegal connections). Economic development or attraction of productive enterprise, has to go hand in hand with the power sector improvement plan. Overall a good exposition by the CEO. We need a "Siror" in every ministry and parastatal. I hope our public service will seek out such people to handle key sectors.
@@georgeodhiambo598 How about using carbon credits to buy off IPP contracts where by carbon credits can be used to buy off IPP contracts if a country shows that the IPP's will be replaced with clean energy. In Kenyas case we have 200mw from Ethiopia ready to go with a capacity of 2000mw. We have plenty of Geothermal in the process of being commercialized. But the problem as you say is the contracts that prevent us from replacing IPP's; reason i suggest there should be a provision for countries with long term IPP contracts who use dirty fuels to be able to replace contracts with buyouts from carbon credits. This way its a win win for both IPP investors and the host country.
@@daviddavis7959 Not a bad idea at all! I hope both KP CEO and CS - Ministry of Energy are reading this. More so because contrary to what you have indicated, there is actually nothing in the PPA contracts that bars either party from terminating the contracts. I have never seen a contract without an early exit clause. In the case of these PPAs, it is just the penalties that are prohibitive, but with carbon credits framework ..... Yes! It might be workable. Great insight!
Very knowledgeable CEO who understands his work, from production, transmission and distribution of power to consumers. Good insight. However, there's only one question Eng. Siror didn't answer straight, and that's why consumers pay for 20% energy lost during transmission. Very impressive conversation
Even in supermarkets you do pay for pilferage. However, there's a limit to which a business can pass their inefficiency to its customers before it becomes an unattractive supplier. KPLC is actually reached that point. KPLC must work on improving its efficiency from many fronts, including pilferage encouraged by its own employees.
@@Msapere A non-executive board chairman has no business engaging in such details. The top Executive post in a parastatal is the CEO. Board chairmen are not even expected to hang around parastals offices from 8am to 5pm on a daily basis. Boards set policies and oversight the management.
Do the regulator Kplc quantify the quality of transmission cables used private contractors ,to ensure that no compromise hence resulting to power loses?
Sigor,the master.....hope the Government helps him make electricity AFFORDABLE..... otherwise Africa's dilemma has been having such great experts in public service but stifling their efforts.Thanks Spice Fm
Encouraging to ear the cost of power will eventually decrease. I think if not already alluded to the consumption of power at off peak i.e. after 11pm ought to be incentivized especially for the energy dependent industries so as to attract investment from both local and foreign 💼! All in all that was an elaborate discussion.👏
Finally some direct questions to the guest from the lady ... I'm so tired of guests who manage to meander their way out because of missed opportunities by the hosts to make the hot seat the hot seat..kudos lady more direct questions please. By the way I was not convinced kplc are not fleecing customers ... thanks
Why can't the energy sector use municipal biogas to replace diesel fuel in thermal stations? The fuel is renewable, locally sourced and cheap ? Low fuel cost adjustment and no forex adjustment. It also gets rid of biomass produced from citizens' homes, keeping the environment cleaner.
The high cost of electricty can also be attributed to the high cost of IPP's. Long term contracts we signed have shackled us to keep using IPP's regardless of cheaper sources of power. But here is a solution: Use the carbon credit markets to offset long term contracts with IPPs. Using carbon credits to buy off IPP contracts where by carbon credits can be used to buy off IPP contracts if a country shows that the IPP's will be replaced with clean energy. In Kenyas case we have clean energy 200mw from Ethiopia ready to go with a capacity of 2000mw. We have plenty of Geothermal in the process of being commercialized. But the problem is the contracts that prevent us from replacing IPP's; Therefore i suggest there should be a provision for countries with long term IPP contracts who use dirty fuels to be able to replace IPP contracts with buyouts from carbon credits. This way its a win win for both IPP investors and the host country.
How can the public (private individuals) who own solar sell to Kenya power, especially during the day? This an opportunity worth exploring. A person having an acre of land or even a roof can install solar panels, produce power - more than they need during the day - and sell it to kenya power. At night the same individual will buy power from Kenya power. At the end of the month, balance the books - whoever owes the other pays.
Not all losses are charged to consumers. There is a maximum reasonable loss level in line with best practices globally that is set and allowed for while setting tariffs and by extension paid for by power customers. Beyond that level, then the utility absorbs such excess losses and it hits the utility's own financial bottom line. It is what drives such utilities to invest in reducing the level of losses.
Damn, Eng Ndereva was right, there was nothing to pin Kenya Power on. Plus, the CEO sure has all his ducks in row. Ndu simply was woefully unprepared and the questions were easily brushed off
The fuel cost is cowboy 🤠 billing, because Kenya 🇰🇪 produces 92% green energy. Diesel powered producers are marginal, and these producers are only brought online during peak hours. Therefore Billing consumers 100% of their units and adding fuel cost is disingenuous and crafty billing by the power retailer.
The question I wanted to hear is if the power coming from Ethiopia & Uganda cheaper than the IPP's and if so why just not get rid of the IPP's and just get the back power from theses countries? Also why not just build more geothermal plants coz it's the cheapest to the customers at Ksh3.00?
We are not South Africa, the circumstances there are far much different from Kenya. There is no excuse for expensive tokens. Someone must take responsibility for this.
@@michaelotieno6524 It is due to both factors. Corruption and low investment went on hand in hand. The point is that demand has surpassed supply. And they wasted alot of time with some petty load management projects which work best with heavy investment in generation, transmission and distribution capacity. African Govts tend to have a very short term view of things. Kenya was shaken from its slumber from the late eighties to early nineties. South Africa is going through it now.
Walisema ati Ruto is tribal but this man knows what he is talking about. Kill the devil but give him his due. I think we are really on the right track. Nigga described stuff and I had no more questions left to ask.. My anger towards KPLC was somehow pacified😄
Just pay and get connected. I too paid for two posts and also bought the cables. Just know that once you pay for the post, the post will belong to Kenya Power.
Wacha siasa za pesa nane. Dams have limited capacity based on the design. If you have extremely high rainfall as was witnessed during the period you are referring to then it leads to overflow. You don't have to fungua anything. Whether you fungua or not, it will overflow.
Excess power is not produced at all. What is erroneously referred to as excess power that is produced is actually excess CAPACITY that is not utilized but paid for. It is the capacity that is not utilized but has to be paid for that is sometimes frowned upon. It costs money to provide CAPACITY even if it is idle. Just like if a school requires you to avail a bus complete with a driver, and also states that the bus must be stationed at the school, ready for use at the snap of a finger. Will you not require the school to make regular payments to you, whether they use the bus or not? You will charge costs associated with providing the idle capacity as well as charging costs associated with operating the bus when used. Idle capacity charges are fixed,whereas operating cost charges are related to plant utilization.
It is not as wild as it may sound. It is similar to the distributor and retailer of oranges/sukuma wiki who, in the absence of competition, inserts distribution and storage losses into the costs that you pay. In a regulated monopolistic sector, like transmission and distribution of electricity, the regulator sets the maximum allowable level of losses to be built into the tariff, above which any other losses are borne by the supplier. For IPPs, idle capacity is paid for, because it costs money to provide such IDLE capacity,
Have you Dona comparative study of how service sectors that have been nationalized have performed? Where the practical evidence that nationalization of such firms leads to better performance?
When this guy was appointed I criticized the appointment assuming he was getting the job for his name. Seems he knows something about power actually alot. I hereby withdraw my criticism
It is not a secret and it doesn't apply to all power consumers. It requires that metering be re-organized so that you have "Time of Use" metering. Reason being that there are benefits in flattening the power demand curve by charging slightly more during periods of peak demand to encourage them to use more power during periods of low demand. High consumption establishments like industries fit into this arrangement very well. It enables supplying more energy at a lower generation, transmission and distribution capacity. Supplying more with the same investment in plant capacity!
@@georgeodhiambo598 I said so coz most of the consumers oblivious of the operations of Kenya power from generation, transmission to distribution and retailing thereby can be susceptible to manipulation. But it is true, at the consumption curve, when demand is high, you're most likely to incur more for power as a user
Actually I beg to differ, under this regime we just might see a turnaround not just at KPLC but in the whole energy sector as well. But the thing is all that will happen courtesy of the guys financing/supporting our budget and economic agenda who want the sector reformed as a condition for the goodies to keep flowing not coz we've some guys who purport to be "God-fearing" in leadership.
