The country’s largest electricity provider, Fiji Electricity Authority has become the Fijian Government’s newest commercial company and renamed Energy Fiji Limited (EFL).
Now wholly owned by the Government, the corporation will have a capital structure and shares, which will be listed on the South Pacific Stock Exchange.
While making the announcement on April 16, Attorney General and Minister for Public Enterprises, Aiyaz Sayed-Khaiyum said it provided the Government the opportunity to harness private sector expertise, innovation and efficiency in new ways and accelerate the expansion of clean and renewable energy throughout the country.
“Corporatisation doesn’t mean that any contracts or staff of the FEA will be affected,” he said.
“There will be no job losses as a result of this transition and no one will be made worse-off. What it does mean is this: through this corporatisation, the Fijian Government is now offering five per cent of the total shares in Energy Fiji Limited to EFL customers in the form of non-voting shares, completely for free.
“This means that eligible Fijians who are EFL customers will be granted a stake in their energy provider for the very first time, giving them the chance to become a shareholder in a billion-dollar asset company.
Know that once you become a shareholder in EFL, you can get dividends. That means when the company makes a profit, money goes directly into your pocket, because you will be shareholders in the company. Additionally, shareholders of EFL will benefit from any capital appreciation.”
All FEA customers’ bills will now come under the name of Energy Fiji Limited, with all domestic account holders and resident Fijian citizens to be offered a parcel of shares.
Sayed-Khaiyum said they would offer one parcel of 250 shares to domestic customers, prepaid customers or post-pay customers who receive a subsidy under the Electricity Subsidy Scheme, whole non-subsidized customers would be offered one parcel of 150 shares.
“So we can all be proud that it is low-income households who will be the biggest beneficiaries from this corporatisation, on top of all the other wonderful programmes we have to support these Fijian families, they will now also see the biggest returns as EFL grows and expands in the years ahead.
Of course, we urge everyone who is eligible to take advantage of this free offer and hold onto these shares for yourselves, your families and even for the next generation who can one day inherit them from you.”
The Attorney-General added that those wanting to sell their shares could do say when the new company lists on the South Pacific Stock Exchange, as shareholders would then be able to buy or sell their shares through the SPSE platform over a period of time.
Offer letters are due to be mailed out with application forms that will also be available at EFL Temporary Customer Care Centres around the country, with the offer period opening on April 20 alongside a toll-free line for inquiries.