Kenya Power Managing Director Ben Chumo (second left) with Chairman
Kenneth Marende during the release of the results for the financial year
ended June 30, 2015 at the Stanley Hotel on October 30, 2015. The
utility firm plans to invest Sh109 billion within the next four years to
expand its national grid network and help eliminate electricity losses.
PHOTO | DIANA NGILA | NATION MEDIA GROUP
Kenya Power plans to invest Sh109 billion within the next four
years to expand its national grid network and help eliminate electricity
losses.
The investment will see the construction of
over 200 substations, installation of transformers and the building of
low voltage electricity distribution lines.
About Sh9
billion of the funds will be sourced internally while the balance will
be in form of loans from both commercial banks and bilateral lenders
such as the African Development Bank and the World Bank.
Kenya
Power General Manager, Finance Ken Tarus disclosed the investment plan
Friday while presenting the company’s financial results for the year
ended June 30.
The utility company posted a six per
cent rise in net profit to Sh7.43 billion for the year ending June 30.
Net earnings for the previous year stood at Sh6.99 billion.
INCREASED PROFITS
The
jump in profits was supported by increased electricity sales and a
review of the power tariff that became effective at the start of
December 2013.
“Electricity sales grew by 5 per cent
from 6,790 million units the previous year to 7,130 million units in the
period under review. This combined with the implementation of the
second phase of the tariff calendar period in July 2014 and improved
distribution efficiency led to a 24.3 per cent increase in sales
revenue,” said Kenya Power in a statement accompanying the results.
During the period under review, the company’s sales rose to Sh77.8 billion from Sh62.6 billion in the previous year.
The
cost of purchasing electricity from generating companies, excluding the
fuel cost levied on thermal power and foreign exchange losses increased
to Sh44.5 billion from Sh30.7 billion.
The rise was
attributed to additional capacity charges by the Kenya Electricity
Generating Company (KenGen) and independent power producers for new
energy plants and an increase in the charges resulting from growth in
the total number of units of electricity purchased during the period.
Transmission
and distribution costs increased from Sh22.7 billion incurred during
the previous year to Sh24.2 billion while the fuel cost dropped by
Sh13.1 billion to Sh25.8 billion following increased geothermal power
consumption which reduced reliance on fuel-driven thermal generators.
As
a result of increased uptake of loans during the period, Kenya Power
incurred higher finance costs related to interest incurred in loans
repayment to Sh4.9 billion, up from Sh4 billion.
“As we
move into the future, we will remain focused on strategies that enable
us take advantage of emerging opportunities for business growth and
sustainability. Our immediate focus will be in system expansion, network
upgrade, customer connectivity and loss reduction,” said Kenya Power
chief executive officer Ben Chumo.
No comments :
Post a Comment