A major local manufacturer has suggested Government needs to make its price model for Independent Power Producers more flexible.

FMF Group chief executive, Ram Bajekal, made this suggestion while presenting during the Top Executives (TOPEX) Conference at the Warwick Fiji Resort & Spa.

“What we have now is fixed price models for IPPs. But I think we should look at different models,” he said.

“What I have been talking about is – when FEA gives you a price, you are bound by it although it may not be attractive.”

But, Mr Bajekal said as a business, there may be something else which might be attractive to him and the company.

“For example, say if I generate electricity in Vuda or Butoni, but I need to draw that power into Walu Bay,” he said.

“FEA should allow me to wheel this power into their grid in Butoni or Vuda, charge me a small fee for wheeling.

“But they should also allow me to draw my power from Kinoya to Walu Bay free of cost.

“I’m feeding to FEA free of cost so FEA should provide to me free of cost as well but charge me a small fee for wheeling.”

Mr Bajekal said this way, he was not dependent on FEA cost or the pricing on this.

“This is because I know I generate this many units and I draw back this many units. FEA can charge me for transmission,” he said.

Technical Extension Services

The other interesting suggestion he came up with was with regards to extension services in the agriculture sector.

“I know Government has a scheme whereby agricultural graduates can get $70,000,” he said.

“But one of the areas that needs to be looked at is technical extension services. There aren’t many people around doing this.

“So these fresh graduates, instead of being forced to buy land and invest into farming, can they be given $70,000 to set up a company which gives extension services.

“So they won’t have to farm but they will be consultants to these farmers.”

As an example, Mr Bajekal said when they were trying to buy potatoes from local farmers, they were shown potatoes which were the size of pingpong balls.

“The fact is the poor guys did not know when to harvest it because they did not have any assistance from extension services,” he said.

“So can we look at privatising extension services. Give the graduates tis money to start up their firms for extenson services.”

TOPEX is orgnaised by the Fiji Commerce & Employers Federation.

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