As some organizations and members of the public continue to call for the reduction of electricity tariff rates, it has been confirmed that based on the current scenario the Fiji Electricity Authority is making losses in every area of the country that it is supplying power to.
Fijivillage has received the actual costs and losses that FEA has been making in Ovalau, Vanua Levu and Viti Levu.
In Ovalau, the FEA has to supply 2 mega watts of power to 1,660 customers and this is all supplied through diesel generators.
Based on this, FEA's cost to supply one unit of power in Ovalau is 50 cents.
The average selling price to customers is about 26.8 cents, which results in a loss of 23 cents for every unit of power generated for the people of Ovalau.
Turning to Vanua Levu where there are two supplying stations, one in Savusavu and the other station in Labasa.
FEA Chief Executive Hasmukh Patel confirmed that they have an installed capacity to supply 3.24 mega watts of power through diesel to 2,500 customers in Savusavu.
The cost of generating one unit of power in Savusavu is 51 cents while the average selling price to customers is 26.8 cents.
These results in FEA making a loss of 24 cents for every unit of power generated for the people of Savusavu.
The cost and loss in relation to power generation in the country is the highest in Labasa, where 7 mega watts of power which is required to supply to 12,000 customers.
The cost to generate per power unit is 55 cents with FEA making a loss of 28 cents per unit in Labasa.
In Viti Levu where there are 134,000 FEA customers, the power supplier needs 138 mega watts of power to continue supplying.
Patel said based on the huge demand in Viti Levu, FEA produces 72 mega watts of power through hydro, 92 mega watts through diesel, 10 mega watts through wind farms, 9 mega watts through Tropik Woods and 5 megawatts through FSC.
However the Authority ends up generating more power through diesel due to reduced supply from Monasavu, Tropik Woods and FSC.
FEA made a loss of 6 cents for every unit of power it generated to the people in Viti Levu.
FEA's cost per unit is 33 cents.
Patel said people should realize that the Authority is making losses everywhere.
The Commerce Commission is currently reviewing the operations and costs of FEA before making a determination on tariffs.
FEA is hoping for a further increase.
Story by: Vijay Narayan
FEA incurs losses in all supply areas
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