2 Sep 2009

Fiji's FEA imposes increased tariffs

11:57 am on 2 September 2009

The Fiji Electricity Authority is to impose increased tariffs for electricity use.

The Commerce Commission, agreed to the FEA's application to charge an average of 3.2 cents per unit, a 15 per cent increase.

Fiji Live reports Commission chairman, Dr Mahendra Reddy, as saying the tariff increase will not affect low domestic consumers whose bills are $50 or less per month.

Also exempted from the increase are domestic lifeline customers and all religious organizations, schools, and other approved non-government organizations.

The FEA is expected to gain additional revenue of about 1 million US dollars per month from the new rates.

In applying for the tariff increase, the FEA said it had faced financial hardship as a result of the devaluation of the Fiji dollar on April 15, 2009, the removal of the fuel surcharge rate from March 11, 2009, and inadequate cash flows to meet its offshore loan agreements.

Dr Reddy has asked FEA to try and reduce its operating expenditure.