OUR MANAGEMENT | Nauru Utilities

STATEMENT BY CHIEF EXECUTIVE OFFICER

Mr. Carmine Piantedosi

Chief Executive Officer

"This half-yearly report for 2020-21 financial year provides an overview to what extent NUC has achieved its business goals as specified in its 5-year Strategic Plan 2015 – 2020 and its Annual Work Plan 2020 - 21.

NUC’s financial performance for the period reflected a favorable outcome resulting in a positive financial trend from July to December 2020. NUC’s revenue shows that it is able to cover its operating costs including depreciation to date.

This situation has been helped by the Government community service obligations where Government pays NUC based on the lifeline electricity kilowatt hours used, up to 200kWh per customer at $0.25 per kWh capped at $1,388,213.

The reduction in fuel costs in the 6-month period and increase in water sales due to the continued dry spell have both contributed to the financial outcomes for the period.

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

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 continues to carry out preventive maintenance on the network.

Total electricity generated from renewable energy solar PV’s was 2,132,693 kWh for the 6-month period with 1,778,613 or 83% exported to the grid. This accounted for 11% of energy delivered to our customers."