While cabinet has approved an electricity tariff increase of 1 cent per unit, a lot of money will be saved and lots of jobs will be created.

Interim Finance Minister Mahendra Chaudhry said while additional revenue from the tariff increase will be used for the construction of the Nadarivatu Hydro Power project, hundreds of new jobs will be created during its construction over the next four years up to 2011.

Chaudhry added that upon completion, the country will experience diesel cost savings resulting in a reduction in diesel imports by the year 2011.

Fiji Electricity Authority (FEA) Acting Chief Executive Sunil De Silva also said while the increase will contribute a lot towards the Nadarivatu Hydro Power project, this will save the FEA a lot in costs in the long term.

"That alone will save us around $50m per year in diesel costs. The average 1 cent increase will help quite a lot to go with our renewable energy program, which is – to begin with – we’ve got the Nadarivatu Hydro-Power Project to build. So if this tariff  is approved by the cabinet is very, very welcome news."

The tariff increase will not apply to low income domestic customers who consume less than 250 units of power which is about $50 per month.

Cabinet Approves Electricity Tariff Increase Publish date/time: 28/07/2008 [17:01]

Consumers who use more than 250 units of electricity a month will have to pay an extra cent for every unit of electricity they use from this Friday.

Cabinet has today approved the last phase of the electricity tariff increase approved by the commerce commission in September 2004, with effect from this Friday, the 1st of August.

However, the tariff will not apply to low income domestic customers who consume less than 250 units of power which is about $50 per month.

All religious organizations, schools, street lights and other nonprofit organizations are exempted from this tariff increase.

Cabinet based its decision on a submission by the interim Minister for Finance Mahendra Chaudhry who said the additional revenue from the increase will be used for the construction of new renewable power capacity, especially the Nadarivatu hydro power project.

Chaudhry added the construction of the project will result in more power capacity which is essential to meet national electricity demands.