OUR MANAGEMENT | Nauru Utilities

STATEMENT BY CHIEF EXECUTIVE OFFICER

Mr. Carmine Piantedosi

Chief Executive Officer

NUC’s financial performance has reflected a continued favorable outcome resulting in a positive financial trend. NUC’s revenue shows that it continues to be able to cover its operating costs including depreciation to date.

Increase demand for our electricity services and increase in demand in water sales due to the continued dry spell which have both contributed to the financial outcomes for the corporation.

Diesel fuel prices have continued to steadily increase as forecasted increasing our operating costs of energy generation as demand increases.

Operation and maintenance activities on our generation and distribution network ensured sufficient generation capacity to meet the demand for energy.

The continued dry spell has impacted on both electricity and water services, where water demand peaked at 1.5 megalitres per day in some months.

Previously, the drought has also seen a spike in distribution network interruptions due to pole top wooden crossarm fires.

Pollution and salts including high humidity has led to increased incidents, however NUC has invested in new polymer crossarms and commenced its replacement program to mitigate further interruptions. NUC continues to carry out preventive maintenance on the network.

Total electricity generated from renewable energy solar photovoltaic systems of which 79 % was exported to the grid. This accounted for 12% of energy delivered to our customers.

Carmine Piantedosi

Chief Executive Officer