The Fiji Commerce and Employers Federation (FCEF) is fervently advocating for lower electricity tariffs as the Fijian Competition and Consumer Commission (FCCC) gears up to commence public consultations tomorrow. Chief Executive Edward Bernard has brought to light the deep concerns voiced by numerous businesses regarding the steep electricity tariff increases proposed by the FCCC.
Bernard greeted the FCCC’s decision to pause the implementation of the proposed tariff hike with approval, recognizing the regulator’s attentiveness to the issues highlighted by the business sector. He underscored the necessity for businesses to participate in the forthcoming public consultations, urging them to submit their feedback in writing to guarantee that their perspectives are adequately incorporated.
The anticipated average increase of 34.7% for commercial users is projected to significantly heighten operational costs in Fiji, which could have serious repercussions on business growth, investment decisions, and overall sector competitiveness. Bernard pointed out that various businesses, regardless of their sizes or locations, could feel the impact of these increases, which may undermine national economic objectives, such as raising the Micro, Small, and Medium Enterprises (MSME) contribution to 22% and enhancing investments to 20% of GDP by the year 2030.
FCEF is currently working on a comprehensive submission to present a cohesive position on behalf of the private sector to the FCCC. Last December, the FCCC had indicated that residential customers consuming between 101 and 300 kilowatt-hours would see an average increase of 4.5%, while commercial clients would experience an even steeper average rise of around 34.7% across various usage categories.
These proposed tariff adjustments are aligned with Energy Fiji Limited’s ambitious $1.57 billion investment initiative over the next four years, aimed at modernizing the nation’s energy infrastructure. The synergistic efforts between the FCEF and the FCCC could lead to more equitable and sustainable energy solutions that not only benefit Fijian businesses but also support essential upgrades in energy service provision. There is hope that a collaborative approach to tariff discussions may yield outcomes that balance economic growth with necessary infrastructure enhancements in Fiji.