The Fiji Electricity Authority (FEA) has recorded a loss of F$12.3 million for 2006. The dismal performance was directly attributed to low water levels at its Monasavu Dam which led to more use of diesel fuel to produce electricity.
As a result, FEA's return on capital was -3.1% compared to Government's requirement of a 10% return from all government commercial enterprises.
The company said that the imposition of fuel surcharges on consumer enabled it to contain the loss at F$12.3 million. Without the fuel surcharges, FEA's net loss would have been F$25 million.
The high fuel prices also contributed to the high costs for the company.
No comments:
Post a Comment