Energy Fiji Limited (EFL) has unveiled a comprehensive new electricity tariff structure aimed at modernizing how its customers are billed, shifting away from a traditional energy-only model. This proposal includes a combination of fixed, energy, and demand charges, which collectively represent the true cost of electricity delivery.
Customers across all categories will now face a fixed daily charge. This fee is essential for ensuring ongoing access to the power system, covering crucial aspects like transmission and distribution networks, substations, meters, and customer service, independent of individual electricity usage.
Energy charges will remain applicable to every customer group, calculated based on the kilowatt hours consumed. These charges encompass costs tied to electricity generation, such as fuel expenses and payments to independent power producers.
For subsidized domestic households consuming up to 100 kilowatt hours per month, government support will persist, contingent upon meeting specific income requirements. Schools will also continue to qualify for subsidies as long as they adhere to low usage limits.
In the commercial sector, EFL is proposing a stepped tariff system which offers lower energy rates to smaller users up to a certain threshold, while higher consumption will trigger increased rates. A fixed daily charge will be implemented within this category as well.
Industrial customers will be charged based on demand bands, with a rise in both fixed and demand charges for those with elevated peak demand. This pricing strategy aims to reflect the true costs associated with building and maintaining the infrastructure needed to meet peak electricity demands.
Moreover, the newly proposed tariff structure will maintain penalties for customers not meeting a power factor of at least 0.85, as specified in the Electricity Act. Failure to comply will lead to additional charges for reactive energy.
EFL stresses that this tariff reform is designed to promote efficient electricity consumption, desired cost fairness across consumers, and bolster a reliable electricity supply as future demand is expected to grow. This proposal embodies a progressive approach to energy management in the region, paving the way for a more sustainable and equitable energy future for all consumers.