Consumers and businesses in Fiji are bracing for an increase in electricity tariffs scheduled to take effect on January 1. Experts caution that this hike could contribute to the rising costs of essential goods and services across the nation. Seema Shandil, Chief Executive of the Consumer Council of Fiji, underlined the significance of electricity as a fundamental input cost that impacts nearly every sector of the economy. She warned that any increase in tariffs is likely to translate into higher prices for necessities such as food, transportation, accommodation, and other basic services.
Shandil pointed out that many households are already facing financial pressures, and further price increases could worsen the situation for families. She stressed the need for early engagement with consumers and businesses regarding pricing adjustments for essential services. Although the Consumer Council submitted recommendations concerning electricity tariffs in 2023, Shandil expressed disappointment that there was no opportunity for input this year.
The Council has called for improved accountability and transparency in how the additional revenue from increased tariffs will be utilized. They emphasized the need for assurance that the extra funds will be directed towards renewable energy initiatives and infrastructure improvements that ensure reliable service. Shandil has requested transparent reporting on the spending of increased tariff revenues and regular public updates on capital projects.
From the business sector’s viewpoint, Vinod Kumar, General Manager of Sports World, acknowledged the challenges posed by the tariff increase. While retailers will attempt to absorb some of the cost increases, he affirmed that they will eventually have to pass on some of the expenses to consumers if operating costs rise too significantly. Kumar also noted that the timing of the tariff hike at the year’s start is particularly difficult and highlighted the importance of thorough consultation with businesses before making such decisions.
As Fiji approaches these significant pricing changes, effective communication among stakeholders is critical. It presents an essential opportunity for collaboration between the government, utility providers, and the community to ensure that necessary reforms benefit all citizens. A united effort may pave the way for solutions that enhance consumer welfare and support business sustainability, fostering a resilient economic environment in Fiji.