The Fijian Competition and Consumer Commission (FCCC) has moved forward with its approval of a new electricity tariff, despite internal government disagreements on the timing and implications of this decision. Minister for Public Works Ro Filipe Tuisawau expressed his concerns, labeling the decision as premature in light of ongoing discussions about the tariff. He emphasized that the government had communicated its desire for further dialogue with the FCCC to explore alternative options that could potentially stave off the hike.
Conversely, Prime Minister Sitiveni Rabuka has publicly backed the FCCC’s decision, underscoring the commission’s autonomy in regulatory matters. In response to the Minister’s concerns, FCCC Chief Executive Senikavika Jiuta reiterated the independence of the commission, stating, “We are an independent body, and Section 14 of our Act clearly states that the functions and determinations of FCCC are independent.” Jiuta acknowledged that while there are varied opinions among Cabinet members, some support the FCCC’s approach.
The FCCC approved a moderate increase of 24.2 percent in overall revenue requirements after substantial discussions with Energy Fiji Limited, deliberately steering away from larger increases that could have significantly impacted vulnerable consumers.
The new tariff structure organizes domestic customers into three tiers based on their usage. Notably, approximately 52 percent of homes, equating to around 98,800 households, will see no changes in their rates, continuing to pay 34 cents per unit for usage up to 100 kilowatt hours per month. For those consuming between 101 and 300 units, the rate will increase slightly by one cent to 35 cents per unit, affecting roughly 40 percent of customers, or about 77,000 households. Households using over 300 units, which make up about eight percent of customers, will experience a two-cent increase to 36 cents per unit.
To put this in perspective, a household consuming 150 units will see its bill rise by only 51 cents, from $51.02 to $51.53 monthly, while those using more than 300 units will see an increase of approximately $2.04.
The FCCC is navigating these complexities with a view toward harmonizing consumer interests with the need for a sustainable electricity market in Fiji, all while promoting fairness and transparency throughout the process. The aim remains clear: protecting consumer welfare while ensuring a stable energy supply for the nation.