FEA Awaits Cabinet Decision

Bula bloggers. Remember when we posted the article Chaudary deferring the increase in fuel surcharge approved by the Commerce Commission? Well Chaudary’s political stunt will now be decided by Cabinet. Chaudary has the balls to get Cabinet to back his political stunt, but the bigger question is how long can FEA continue to wear the $4.1m loss per month? Who is robin hood going to rob this time to pay for the surcharge? Air Pacific? Keep blogging ragone!
Publish date/time: 09/06/2008 [13:28]

The Fiji Electricity Authority is now awaiting Cabinet’s decision on whether the proposed fuel surcharge rate for consumers will be approved.

FEA chairman, Nizam Ud-Dean said he can’t say anything at this stage as the final decision lies with cabinet.

Dean said he could not comment after the Interim Finance and Energy Minister, Mahendra Chaudhry deferred the Commerce Commission’s decision to increase the fuel surcharge rates which would have seen an increase in the electricity rates.

However, Dean confirmed that based on the current fuel price increases, the FEA is making a loss of more than $4.1m a month. He said that is a fact and he can’t say what can be done if the fuel surcharge increase is not granted. The Commerce Commission earlier announced that they had granted the FEA an increase in the fuel surcharge rate from 2.83 cents per unit to 5.53 cents per unit effective from this Thursday. However, this was overturned by Chaudhry, who said the final decision must come from Cabinet.

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16 Responses to “FEA Awaits Cabinet Decision”

  1. Mark Manning Says:

    If I was a Fijian , i would consider all that those have done in the I.G. as an attack on me , my family and my society . I would consider their behaviour , as an act of war and respond accordingly !

  2. FijiGirl Says:

    Would the media PLEASE stop calling these jokers ‘Cabinet’?

    The term ‘Cabinet’ applies to select members of an ELECTED Parliament.

    Anything this Joke-Of-A-Junta puts together is a Committee, Posse, Lynch Mob, or other similar expression.

    PLEASE stop calling them ‘Cabinet’ – it gives the Illegal Regime the wrong idea about themselves.

    God bless Fiji

  3. Mark Manning Says:

    Kitchen Cabinet !

  4. aubatinuku-N Says:

    More like Chicken coop cabinet!!

  5. Tim Says:

    @ FijiGirl – ole to that. I noticed the other day Yippe-I-Aye refer to himself as “Minister”, and that went uncontested as well. He and others are Interim-Ministers (illegal Interim Ministers at that!). They need to be reminded of it (its a term they invented anyway), otherwise as usual, they’ll begin to believe their own bulsch and be overcome by a sense of permanence.

  6. natewaprince Says:

    Being a monopoly,one would think that FEA is enjoying huge profits.But the fact of the matter is that ,this utility provider is treading a very thin line between being in the red and making ends meet.

    Even I don’t understand how this can be,considering the number of customers in this country.But insiders say that the Monasavu dam has been a disappointment,forcing the company to seek other sources of renewal energy.

    Chodo should realise that once FEA keeps dipping into the kitty to pay for their huge fuel bill,they will eventually be so deep in the red,that it will take a very long time to get out of.

    And then some bright dickhead in this regime will come up with the idea of selling off the organisation to some foreign company,as is the case with the Lautoka hospital.

    Maybe this is part of the snakes master plan,to sell off Fiji’s industries piece by piece to the Asians.Might be true,…..hhmmmmm.

  7. LUVfiji Says:

    I thought Monasavu was supposed to ease expenses for FEA to provide us with cheaper electricity ?? Ah well, I guess that was another of yester-year’s plan that didnt work ?

    And another one for the shelf.. or the kitchen Cabinet ? Vinaka MM.

  8. Maqa a Leqa Says:

    This will be another case of robbing Paul to pay peter. Maiya Chodo is getting desperate and is running out of options. FEA cannot afford to go wothout the increase and soon Govt will be paying for these losses.

    Your time is coming Chodo!

  9. Mark Manning Says:

    I see the sugar industry has run out of funds for it’s projects or they are being used for other things ! In the times today .

  10. Jese Waqalekaleka Says:

    Watch out Air Pacific!

  11. gryphon Says:

    The issue of electricity has plagued the country for some time. So much so that the current fuel prices demanded the authority raise its fuel surcharge in order to reduce the overwhelming losses it would incur. While the decision taken is one which was made in the best interest of business survival, the finance minister saw it fit to suspend the decision.

    It is only logical that any company which suffers massive losses needs to take appropriate steps to counter the situation – something the FEA did and a decision supported by the people of Fiji as they understand the current fuel crisis. So why has the minister decided to halt the decision to impose the fuel surcharge?

    Once again, this is a decision which was taken rather too rashly and the issue behind the matter was not fully studied. The fact remains that if the authority is not given the power to impose the fuel surcharge, there is a very likelihood the authority will revert to “power sharing” in order to minimize its losses and continue supplying electricity to its consumers. The article above is a very clear indication of the direction Dean will be taking soon when the financial ramifications begin to hurt the authority – Dean has a wealth of experience in the electricity sector and it would be extremely foolhardy of a minister with absolutely no knowledge of how electricity economics works not to allow a fuel surcharge.

    While Chaudary has once again made an attempt to act his role as Robin Hood, he has failed to realize that his actions will have severe economic repercussions which will burden the poor even further when power sharing begins and shops are not able to conduct transactions during their power outage schedule.

    An authority which has been often praised for its ability to weather financial and economic storms should not be subjected to such treatment from a finance minister who’s actions grow more and more beyond the norms of sanity by the day. It should be encouraged for not taking the power sharing option as its first choice.

  12. merovingian Says:

    @NP, wouldn’t put it past Chaudhry to dream up a scheme like that!

    No doubt if FEA is to be sold to an asian company:-

    …. Francis Narayan will broker the deal,

    …. Khaiyum will say its legal,

    …. Bainimarama will sign off on it, and

    …. and Chaudhry will get the commission banked into his personal bank account in Australia!

  13. Jese Waqalekaleka Says:

    Air Pacific has increased its airfares due to the fuel surcharge. Now does Chaudary have the moral fibre to also try his political stunt here as well?

  14. Corruption Fighter Says:

    @FijiGirl Agree 200 %. No-one should call them Cabinet. They are the so-called Cabinet. According to the FEA Annual Report (2006) the FEA made an operating loss of tax in 2006 $12.4 million. The main reason for this was the exorbitant cost of diesel fuel”. The FEA has substantial reserves but a very low operating margin. Without an increase in the charges they can make, a responsible board would have no choice but to restrict diesel generation and ration power. Lets’ hope they have the guts to stand up to the bullies of the IG

  15. fuggedaboutit Says:

    Well I guess now we are seeing the results of not approving the fuel surcharge. FEA has just announced massive layoffs.Thanks a bunch Chaudhry, once again you’ve proved yor financial genius ya fuckwit!!

    See the story on Fiji Times online

    http://www.fijitimes.com/story.aspx?id=91814

  16. Striker Says:

    Time to protest fellas, take to the streets and stand up against high prices and growing poverty. Evil reigns when good men do nothing!

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