RURAL ELECTRIFICATION POLICY (1993)

SUMMARY OF POLICY

The Rural Electrification Policy (1993) was approved by Cabinet in March 1993 and it continues to provide the basis of assistance for the rural electrification programme up till today.  The Department of Energy is the sole implementing agency for the policy.   

The 1993 policy replaces the original policy that was formulated in 1974. However, the latter is effective in terms of maintenance, repair and replacement for schemes until they have been transferred or incorporated under the terms of the revised policy.   

The major facets of the revised policy include:  

          1.The community may now make a choice of the type of electricity scheme they wish to have. The choices entail; 

                     i.      Diesel generator power supply, underground cable distribution and wiring of individual houses.

                   ii.      Solar lighting scheme for each individual house.  

                  iii.      Solar lighting scheme for a community facility 

                 iv.      Supply from FEA with individual house wiring. 

                   v.      Supply from a centralized power supply scheme with individual house wiring (supply from Government stations).

                 vi.      Supply from a hydro-electric generator system with individual house wiring.  

2.      The Government contributes a total of 90% of the total capital cost of the project and the remaining 10% is catered for by the Community.

3.      Government assistance to schemes is finite. That is, a community will only be assisted “once” in terms of rural electrification assistance.

4.      For schemes (other than FEA, Solar and Grid connection to the Government Station),  the Government will assist the community for the first three years on maintenance and repair of the scheme. At the end of the three years, the ownership of the scheme will be transferred to the community. For these schemes the Government will ensure that relevant training to equip the community with the necessary skills to operate and manage the scheme is undertaken. Further it is during these three years the community is also encouraged to amass / accumulate the much needed financial resources to cater for responsibilities when Government assistance ceases at the end of the three (3) years.

5.      With the transfer of ownership of schemes in 4 above, any future maintenance, repair or the eventual replacement of the generating set will be catered for by the Community. However, the Government is willing to provide the facility for technical, procurement and other capacities that may be required by the community. However, all costs incurred on the utilization of these capacities will be catered for or paid in full by the community.

6.      The need to emphasize that each scheme is to operate as a business entity is overwhelming as it is the recipe to ensuring overall vitality and sustainability of schemes.

Communities requesting for rural electrification assistance will be expected to provide assistance on the construction of schemes.  The assistance will include accommodation, catering, labour and transportation of wherever applicable. For the FEA Connected / Government Station Extension / Solar Schemes, appropriate tariffs will be levied by organizations responsible for these utilities to cater for these services. The operation of schemes other than FEA, Solar and centralised power supply schemes will be the responsibility of the community.  This is the case with the existing diesel power generators schemes. 

The revised policy includes the definition of arrangements for extending existing schemes.  The policy also includes the definition of arrangements for schemes to be connected to continuous supplies when such supplies are extended close enough to schemes to allow the connections to be economically viable.

Except for solar schemes, the 1993 policy provides for the same type of household electrical installation as in the original policy viz. two fluorescent lights and one power point.  In the case of solar schemes, the power point is omitted because of the high capital cost of the necessary solar equipment, but a power outlet to cater for small radio’s is included.

This is a summary of the important details of the 1993 Rural Electrification Policy to provide a quick reference guide.  It is not intended to replace the details of the policy which must be referred to for clarification on any points which need further explanation. Our address is outlined below;

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LONG TERM OBJECTIVE OF GOVERNMENT ELECTRIFICATION POLICY

The long objective of the Government is to provide 24 hour continuous electricity to all potential consumers in Fiji.

Within this context, the Rural Electrification Policy (1993) must be developed.

OBJECTIVES OF RURAL ELECTRIFICATION POLICY (1993)

The overall objective of the Rural Electrification Policy (1993) is to provide electricity primarily for social benefit to all rural residents in Fiji and develop load centres which are necessary for the viable expansion of the 24 hour continuous electricity supply.

PRINCIPLES OF THE POLICY

To achieve the objectives of the Rural Electrification Policy (1993), the policy must adhere to the following principles:

Consistency: -            All applicants will be treated equitably.  They will be offered the same opportunities and the same levels of subsidy.

Choice:-                      Rural  consumers will choose the form of the electricity supply.  The choice must be based on full and clear information on all costs and benefits associated with each form of electricity  

Sustainability:-           Electricity supply will be permanent

User pays:-                 The costs of ensuring sustainability will be met by the consumers.  Financial investment, collection and accountancy facilities will be provided to facilitate sustainability

Transition Policy:-      A transition policy will ensure that all existing schemes implemented under the old policy can be integrated into the rural electrification framework of the new policy and be consistent with the principles of the policy.

Minimize Cost to consumer: -

                                    Assistance will be given in the provision of maintenance and repair facilities to encourage consumers to care for their electricity system.

Accountability:-          An agency is solely responsible and accountable to Government for the implementation of the policy

Maximising coverage:-

                                    Electricity is provided to as many people as possible in a given fiscal year after an agreed level of any budget allocation has been set aside for commercial/income generating development.