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The Fiji Electricity Authority’s (FEA) new tariff structure has led to a change in the way monthly bills are calculated based on consumption patterns says chief executive officer Hasmukh Patel.
Patel said the new tariff structure meant a reduced tariff from 20.59 cents per unit to 17.20 cents per unit for low end users who consume less than 130 units per month and an increased tariff from 26.02 cents per unit to 34.84 cents per unit for users who consume more than 130 units per month.
FEA will now take into account three factors to calculate bills which include the billing period, units used for the period and the daily average usage.
Thus “the domestic tariff of 17.20 cents is applied to a domestic customer for those units consumed from June 10 onwards and whose usage for the month is less than or equal to 130 kilowatt hour (kWh)”.
“This means that the Daily Average Usage will be 4.27 units (130 units divided by 30.42) or less,” said Patel.
He further added that “for a customer whose usage is more than 130kWh per month, a tariff rate of 34.84 cents per unit has been applied for all the units consumed from June 10 onwards”.
“It is also possible that a customer may use 135 units for a 33 day billing period so in this case the domestic life line tariff of 17.20 cents per unit will still be applied as the daily average usage is 4.09 units (135/33), which is less than 4.27 units.”
Patel noted the tariff is not applied as a step tariff whereby the 17.20 cents per unit is charged on the first 130kW units used and the remaining units are charged on the higher domestic band of 34.84 cents per unit.
“This means that if your daily average usage for the month exceeds 4.27 units for your billing period then the higher domestic tariff of 34.84 cents per unit is applied to all units consumed from June 10 onwards.”
The change in electricity tariff structure was announced by the Commerce Commission on June 1.
The tariff changes came into effect from June 10.
By Edwina Chand
