Businesses in Fiji are being strongly urged to participate in upcoming public consultations concerning the proposed changes to the electricity tariff rate structure and to provide written feedback. This call to action comes from the Fiji Commerce and Employers Federation (FCEF), which has recognized the significant concerns raised by the business community about the potential impacts of expected tariff increases.
FCEF Executive Officer Edward Bernard noted the federation’s ongoing efforts to advocate for a smaller rate increase. He expressed gratitude to the Fijian Competition and Consumer Commission (FCCC) for delaying the implementation of the proposed increase. Bernard underscored the necessity of business involvement in the consultations, highlighting that their feedback is crucial to ensuring their perspectives are considered during this important period.
Last December, the FCCC revealed plans for an average 4.5 percent hike in electricity tariffs for residential users consuming between 101 to over 300 kWh, while commercial users face an average increase of approximately 34.7 percent across various usage tiers. These tariff changes are deemed necessary to support a substantial $1.57 billion investment in Energy Fiji Limited (EFL) over the next four years, which is projected to increase revenue by 24.2 percent.
Bernard raised concerns that the proposed rise in commercial electricity rates could worsen the financial challenges faced by businesses. This could adversely affect expansion efforts, investment choices, and overall competitiveness, impacting various sectors irrespective of their size, ownership, or location. There is apprehension that these tariff hikes might undermine national objectives, including increasing the contribution of Micro, Small, and Medium Enterprises (MSMEs) to 22 percent and elevating investment to 20 percent of Fiji’s GDP by 2030.
To present a cohesive stance from the private sector, the FCEF intends to prepare a comprehensive submission for discussions with the FCCC. The FCCC is also welcoming engagement not only from commercial entities but also from domestic consumers, advocacy groups, government bodies, political organizations, social groups, and youth during the consultation sessions.
The consultations are set to occur between January 6 and January 15 in various regions across Fiji, offering ample chances for participation. Locations include Labasa, Seaqaqa, Savusavu, Sigatoka, Nadi, Lautoka, Suva, among other towns, with sessions running from 10 AM to 3 PM at designated venues, some of which are still to be confirmed.
These collaborative discussions between businesses and regulatory authorities may lead to solutions that balance the financial concerns of the private sector while facilitating essential investments for Fiji’s energy future. Involvement in these consultations presents a valuable chance for stakeholders to advocate for equitable pricing that fosters business growth and bolsters economic development. Engaging in dialogue can inspire positive outcomes that support both consumer needs and investment goals for a sustainable future.