Watchdog approves 15pc power tariff increase

August 18, 2009 05:01:20 PM

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Competition watchdog, the Commerce Commission, has agreed to have Fiji Electricity Authority impose increased tariffs for electricity use from September 1 this year.

The FEA had applied to charge an average of 3.2cents per unit (15 per cent increases).

Chairman of the Commerce Commission Dr Mahendra Reddy said 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 $2 million 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.