Fuel budget bust
Monday, February 28, 2011
THE Fiji Electricity Authority will bust its fuel budget from next month due to increase in global fuel prices, chief executive officer Hasmukh Patel confirmed.
"The fuel price in the global market continues to increase and is currently at $US110 per barrel," Mr Patel said.
"The FEA expects to pay more than $2000 per metric tonne from next month whereas our budgeted price for 2011 is $1,900 per metric tonne.
"Therefore, it is important that we complete Nadarivatu Hydro project by the end of 2011 and the remaining projects by 2015 to achieve the 90 per cent renewable energy target and also achieve substantial savings in fuel," he said. Works Minister, Timoci Natuva said the Nadarivatu Hydro project should save the nation $220million in foreign exchange earnings.
The FEA estimated $25m a year in fuel cost savings.
Mr Patel said the Nadarivatu Hydro Project should meet the future energy demand.
Nadarivatu's capacity should supply nation up to 12 hours of energy. At 40 megawatts anticipated production, the dam is half the size of Monasavu.
Experts at the dam said the production could have been higher if the dam was constructed further up the Nadarivatu terrains.
But because it posed a risk to villages, the construction had to be further downstream.
March 01, 2011
FEA laments impending budget bust
This is getting almost embarrassing.
True to form, whenever there are fluctuations in the price of global oil prices, you can pretty much predict that the Fiji Electricity Authority will start making noises about the impact on their ability to provide the service that they're paid to do, as some kind of valid justification to shackle an already overburdened taxpaying citizenry.
Obviously the global trend of AUSTERITY is put in the too hard box by FEA. You'd think that they'd have some competent risk management idea's about reserves that can help weather these fluctuations.
Tighten up your belt FEA and start showing your customers that you can think outside the box and take some hits yourself instead of continuing to pick-pocket We The People at will.
Cue Premila Kumar.
It will be interesting to see how the economic lifeline of Fiji Me'ing, as being championed and hurrah-ed by the illegal and treasonous Bainimarama and Sayed Khaiyum, will weather this one sans fuel hedging approaches.