The potential increase in electricity tariffs in Fiji has raised significant concerns, particularly for vulnerable populations who may struggle to adapt to higher costs. Former attorney-general and finance minister Aiyaz Sayed-Khaiyum emphasized that the impact of an electricity tariff hike would disproportionately affect those without stable incomes, including individuals on social welfare, those in the informal sector, and lower-income families who are already facing financial challenges.
Sayed-Khaiyum pointed out that while some supporters argue that households using less electricity won’t be affected, this perspective overlooks the broader implications of such an increase. Reports suggest that in certain sectors, electricity rates could soar as high as 37%, with an average increase of 25% expected. He contended that when businesses face higher energy costs, they are likely to pass these expenses onto consumers through increased prices for goods and services, including essentials like food and accommodation. Consequently, this could lead to rising costs for everyday items, further straining the budgets of ordinary Fijians.
He also highlighted that if the costs of exported goods rise due to increased operational expenses, it could jeopardize the competitiveness of Fijian products in the global market, possibly affecting employment levels if exports decline. The potential repercussions extend to small retail establishments, which are already grappling with tight margins and reduced consumer spending.
Sayed-Khaiyum criticized the Fijian Consumer Commerce Commission (FCCC) for its previous handling of electricity tariff increases, asserting that the latest proposed hike could have been avoided if the FCCC had adhered to proper processes and maintained requisite competencies. Past decisions were grounded in consultation, yet he labeled the FCCC’s justification for relying on 2023 consultations for a future increase as flawed, given that their earlier proposal was officially rejected.
In response to the public’s concerns, the FCCC announced a 21-day public consultation period, aimed at engaging citizens in discussions surrounding tariff changes. The details of this forthcoming consultation will be shared in the near future. The situation underscores the delicate balance between necessary economic adjustments and the need to protect the most affected segments of the population, reflecting the ongoing challenge of ensuring affordability and economic accessibility in Fiji.