13 Sep 2010

Fiji Commerce Commission open to power rationing

3:02 pm on 13 September 2010

The Fiji Commerce Commission says it would support the idea of power rationing to the domestic sector but it is still considering a proposal to increase tariffs.

The Commission launched an inquiry into the finances and operations of the Fiji Electricity Authority two weeks ago.

The Chair of the Commerce Commission Dr Mahendra Reddy says the domestic sector should have its electricity rationed, with sufficient notice.

He says at the same time it is looking into a submission by the authority to increase tariffs.

"So what we need to ascertain is one, what should be the market rate of the electricity tariff so that we don't end up giving subsidies to those who do not deserve. And FEA is able to operate efficiently and profitably and also contribute towards the future investment."

Dr Mahendra Reddy says the Commission does not want the tariffs to become an impediment for the development of the private sector.