Humanitarian Development Program - KPLC profits hit Sh1.4b

KPLC profits hit Sh1.4b (01/03/07)

Kenya Power and Lighting Company (KPLC) has announced a 20 per cent increase in its pre-tax profit to Sh1.42 billion over the last six months.

The firm said the gains were driven by an increase in sales revenues which rose by Sh922 million to Sh12.24 billion.

This was mainly attributed to an increase in unit sales and improved yield as a result of higher electricity consumption.

Fuel cost recoveries increased by 47 per cent from Sh5.3 billion to Sh7 billion due to increased generation from fuel based plants. The firm has also declared a dividend of 60 cents per ordinary share.

The company's Chief Executive Officer, Mr Don Priestman told an investor briefing on Wednesday that the Government had further agreed to pay the Kenya Electricity Generating Company (KenGen) the Sh0.60 per kWh difference between the KenGen tariff of Sh2.36 per kWh and Sh1.76 per kWh, for the period July 1, 2006 to 31 December 2006 "pending an out come and implementation of the tariff Study commissioned by the Electricity Regulatory Board (ERB)."

"Any funds received from the Government to supplement the KenGen tariff will be passed through from KPLC to KenGen."

"Non-fuel power purchase costs also increased by Sh407 million to Sh6 billion from a low of Sh5.6 billion the previous period as a result of a rise in units purchased," he said.

Source: All Africa

To receive regular email alerts, contact us at updates@developmentprogram.org

Click here for Newsletter Archive

Home	Concept	The Issues	HDP Events	Sustainable Development		Stats	Info Centre
		Resources	BFAFA	Support	Contact