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The Fiji Electricity Authority expects to make a massive loss of around $60-$70 million for the 2010 financial year following a loss of nearly $10 million in the past eight months, chief executive officer Hasmukh Patel has revealed.
“In the last 8 months, we’ve had a loss of $9.8 million dollars and the projected loss for FEA at the end of the year is around $60-70 million,” Patel said at the FEA headquarters last night while conducting a presentation on the authority’s financial viability, future renewable energy power development plans and its request to increase electricity tariffs.
Commenting on FEA’s financial performance for the last two years, Patel said they faced a lot of difficulties when costs of global fuel prices hit an all time high in 2008.
“The Fiji Electricity Authority in August 2008 was paying FJ$2,150 for a metric tonne (of fuel) when our grade given was only $756,” he revealed.
Despite their financial difficulties, Patel said they still managed to achieve end of year profits of more than $4 million in the previous two years.
“But even in those difficult times at the end of the year we still managed to keep our heads above the water with a $2.5 million profit and our profit last year was $2.4 million.”
Reporter: Repeka Nasiko
