The recent announcement from the Competition and Consumer Commission regarding new electricity tariff rates has sparked widespread concern among the public, various political groups, and some Cabinet members. Former Chairperson of the Fiji Commerce and Consumer Commission (FCCC), Mahendra Reddy, has expressed strong reservations about the tariff review process.
Reddy emphasized that any modifications to fees or tariffs in regulated sectors must be underpinned by a transparent and inclusive consultation process. He criticized the adequacy of a consultation that took place a year ago, pointing out that the intervening time may have significantly altered economic, social, and cost structures.
Furthermore, he highlighted the necessity of including insights from consumer advocacy groups and relevant government representatives. According to Reddy, failing to conduct proper consultations could be a violation of the Fiji Competition and Consumer Act of 2010. He also noted that there is dissatisfaction within the government regarding the tariff changes, raising questions about whether members of the board at Electricity Fiji Limited (EFL) are receiving appropriate policy direction from the ministers.
Reddy commented on remarks made by the FCCC’s Chief Executive Officer, suggesting that there are differing perspectives among Cabinet members concerning the tariff changes. He viewed these comments as politically motivated, which could erode the regulator’s impartiality.
In broader terms, Reddy argued that electricity should be seen as a public good rather than solely a commodity, given its vast socio-economic implications. He proposed that the funding for future infrastructure development should not solely depend on current consumers; instead, it could involve leveraging capital markets, with any potential adverse effects addressed through targeted government interventions.
This discussion highlights the essential balance between regulatory frameworks and public welfare. It underscores the importance of a collaborative approach in energy management and policy-making that prioritizes consumer protection and the collective good of society.