• Kplc said the fiscal year that ended on June 2020 was one of the toughest the company has ever experienced.
• The company said that there will be no urgent need for tariff increases if all customers pay their bills on time. Kplc Board of Directors chairperson Vivienne Yeda speaking during the company’s AGM on Thursday. The Kenya Power and Lighting Company has welcomed the step take by President Uhuru Kenyatta of forming a task force to review Kenya Power’s purchase agreements.
Kplc Board of Directors chairperson Vivienne Yeda said that the board welcomes the move, and expects that it will result in a PPA system that is a win-win for fair power generators, consumers, the Kenyan taxpayer, and the company.
Speaking during the company’s Annual General Meeting on Thursday, Yeda said that its fiscal year that ended on June 2020 was one of the toughest the company has ever experienced.
“Our fiscal year that ended on June 30, 2020, was one of the toughest the company has ever experienced. A major contributor was the onset of Covid-19 in the second half of the fiscal year,” Yeda said.
The president had gazetted a task force that will serve for a period of six months with effect from March 29, 2021.
The task force will undertake a comprehensive review and analysis of the terms of all Power Purchase Agreements (PPAs) entered into by Kenya Power and probe the compliance of the PPAs and all associated agreements with government policies.
The team will review the allocation of risk between the independent power producers and KPLC under the PPAs, and make appropriate recommendations.
According to Yeda, there will be no urgent need for tariff increases if all customers pay their bills on time.
“As long as we continue on this path of effective management, and all customers pay their bills on time, there’ll be no urgent need for tariff increases. Kenyans have enough financial
She said that a short-term priority is to stabilise the company’s cash position in order to provide it with a platform for recovery and growth.Company’s Managing Director and CEO Peter Ngugi said that they are determined to improve the company’s performance by implementing a turn-around strategy that is focused on increasing sales; improving revenue collection and increasing system efficiency.Ngugi said that enhancing revenue collection efficiency is critical to improving the cash flow position of the company.“To address this, we assigned meter readers, revenue collectors and installation inspectors […]
