The Fiji Commerce and Employers Federation (FCEF) is actively advocating for reduced electricity tariffs as the Fijian Competition and Consumer Commission (FCCC) prepares to initiate public consultations starting tomorrow. FCEF Chief Executive Edward Bernard has reported that many businesses have expressed serious concerns regarding the substantial proposed electricity tariff increases.
Bernard welcomed the FCCC’s recent decision to suspend the implementation of the proposed tariff hike, acknowledging the regulator’s responsiveness to the concerns raised by the business community. He emphasized the importance of businesses participating in the upcoming public consultations and submitting their feedback in writing to ensure their voices are effectively represented.
According to Bernard, the average 34.7% increase for commercial users is set to significantly elevate the cost of doing business in Fiji. This rise in expenses could have far-reaching consequences on business expansion, investment choices, and the overall competitiveness of various sectors. He highlighted that all types of businesses across different regions would feel these pressures, potentially jeopardizing national economic goals, such as increasing the Micro, Small, and Medium Enterprises (MSME) contribution to 22% and boosting investments to 20% of GDP by 2030.
The FCEF is in the process of compiling a consolidated submission to present a unified stance on behalf of the private sector to the FCCC. Previously, on December 19 of last year, the FCCC indicated that residential customers using between 101 and 300 kilowatt-hours would face an average increase of 4.5%, while commercial customers are looking at an even steeper average rise of approximately 34.7% across different usage tiers.
These proposed tariff increments are designed to support Energy Fiji Limited’s ambitious $1.57 billion investment program over the next four years, aimed at improving the country’s energy infrastructure. The collaborative efforts between the FCEF and the FCCC might pave the way for more balanced and sustainable energy solutions that benefit Fijian businesses while supporting necessary upgrades in energy provision.