FEA Fuel Surcharge Increase Approved

Cabinet has approved the increase of the fuel surcharge rate as approved by the Commerce Commission in June this year.

This will increase by 2.7 cents per unit from 2.83 cents per unit to 5.53 cents per unit.

The fuel surcharge framework ceases at the end of 2009.

At the cabinet meeting yesterday, based on the submission by interim Works Minister Timoci Natuva cabinet agreed that with effect from the 18th of November this year the fuel surcharge framework for the Fiji Electricity Authority (FEA) approved by the Commerce Commission in September 2006 and put on hold in June 2008, will be re-implemented.

The purpose of the fuel surcharge is so that the FEA are able to generate cash flows to fund its renewable energy development program, especially the Nadarivatu hydro power project.

Those that use less than 75 units per month or $15 per month or less do not have to pay this fuel surcharge rate.

About 23% of domestic consumers who consume between 75 and 125 units per month are charged only 50% of the surcharge rate.

The FEA submitted that industrial consumers consisting of 26% of Fiji's electricity sales will be charged with the full fuel surcharge rate.

Commercial customers consisting of 43% of Fiji's electricity sales will be charged with the full fuel surcharge rate.

Cabinet has also agreed that from January 1st next year, there will be a lower rate of import duty of 4 cents per litre for the FEA's diesel oil and Heavy Fuel Oil purchases.