Higher electricity costs for large businesses and manufacturers may have broader implications for the economy, according to Jitesh Patel, President of the Suva Retailers Association. This statement follows the recent approval of a 24.2 percent electricity tariff increase by the Fijian Competition and Consumer Commission (FCCC), which is significantly lower than the 37 percent originally proposed by Energy Fiji Limited.
Patel expressed concerns that elevated production costs could eventually trickle down through the supply chain, leading to increased retail prices at a time when consumers are already grappling with rising living expenses. “EFL has stated that most households will remain unaffected, but substantial increases could have repercussions for consumers,” warned Patel. He emphasized that larger manufacturers, including those producing essential goods such as food and textiles, are likely to feel a greater impact. “If business costs rise, the cost of goods will inevitably rise as well,” he noted.
Diren Kapadia, a director at Brijlal, recognized that while the increase poses challenges for businesses, it is a reality that must be accepted. “It’s not favorable, but it is something we have to accept. Basically everything is going up, and I think there is nothing much we can do about it,” Kapadia stated.
The FCCC has asserted that the revised tariff aims to balance the financial sustainability of EFL while minimizing the impact on consumers and businesses. However, business leaders remain cautious, expressing that consistent increases in utility costs could negatively impact pricing strategies, investment decisions, and overall business confidence in the long term.
As businesses and consumers navigate through these changes, there remains a sense of hope that adaptation and efficiency could mitigate potential adverse effects, ensuring economic stability in the face of rising costs.