The government’s next step to divest shares in Fiji Electricity Authority and to have an independent regulator was taken today as the Electricity Bill was passed in parliament.
The Electricity Bill is a result of government’s intention to corporatise FEA and create a company that will be registered under the Companies Act 2015.
Attorney General Aiyaz Sayed-Khaiyum says the company will subsequently be partially divested.
Under the Electricity Act 1966 the FEA is currently enjoying monopolistic status in the retail, transmission and distribution of electricity in Fiji. FEA also performs regulatory functions of approval of licences and compliance with safety standards.
The new law also has regulatory reform in the electricity industry of Fiji.
Sayed-Khaiyum says given the proposed partial divestment, it is not appropriate for the company to regulate the electricity industry or to issue electricity related licences.
The Attorney General says the objective of establishing an independent regulator is to deregulate the electricity industry and to further enhance Government’s policy for good governance, transparency and accountability.
The primary roles and responsibilities of the Regulator will be to issue licences in relation to retail, generation, transmission and distribution of electricity, to determine tariffs and price methodology for electricity and the administration, enforcement and regulation of the electricity industry.
The Electricity Bill includes consequential amendments to the Commerce Commission Act to give effect to the proposed role of the Fiji Commerce Commission as the Regulator.
Sayed-Khaiyum says FEA has many challenges and that is also the reason for the new law.
He says FEA had 117,315 customers in 2000 while it has 174,530 customers today.
The Minister says capital expenditure for FEA between 2000 to 2006 was 32 million dollars while the expenditure from 2007 to 2017 is 77 million dollars due to more electricity connections.
Sayed-Khaiyum says 5,500 new customers are now being connected on a yearly basis.
He says one of the main challenges of FEA is ageing assets as many old cables have not been replaced for many years.
The Attorney General says FEA is expected to spend 150 million dollars in the next 5 to 7 years to replace ageing assets. 50 million dollars has also been spent so far to refurbish the assets at Monasavu Hydro Dam.
29 parliamentarians voted for the Electricity Bill while 15 MPs voted against the bill.
6 parliamentarians did not vote.
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