The People’s Alliance Party (PAP) has strongly criticized former Attorney-General Aiyaz Sayed-Khaiyum and the previous FijiFirst government for the current pressures facing Fijians regarding rising electricity prices. PAP General Secretary Sila Balawa responded to recent comments from Sayed-Khaiyum, claiming his explanations were overly complicated and failed to acknowledge his accountability in the ongoing challenges consumers are experiencing.
Balawa emphasized that the impetus behind the financial strain to increase electricity prices stems directly from decisions made by Sayed-Khaiyum and the FijiFirst administration. He pointed to a significant decision made in 2021, when 44 percent of Energy Fiji Ltd (EFL) was sold to the Japanese company Chugoku for roughly $1.25 billion. This shift transformed EFL from a public service provider into a profit-oriented entity.
According to Balawa, following the sale, EFL was expected to generate profits and return value to its shareholders, making higher revenue demands part of the new business model Sayed-Khaiyum created. He highlighted EFL’s recent submission to the Fijian Competition and Consumer Commission (FCCC), in which the company expressed its intention to pursue a 32 percent increase in electricity tariffs over the next four years. The reasoning provided was that current tariffs are insufficient to support the company’s escalating investment needs, projected to rise by around 4 percent annually.
Balawa noted that EFL anticipates requiring around $4.3 billion in investments by 2031, with about $1.4 billion dedicated to upgrading transmission and distribution systems across Fiji’s major islands. Despite a tariff freeze since 2019, EFL’s operational costs and growth have continued to increase.
“It’s vital to understand that these pressures are not coincidental; they are the result of altering a public utility into a profit-driven business,” stated Balawa. He criticized Sayed-Khaiyum for discussing important elements such as regulation, consultation, and transparency only retrospectively, arguing that public engagement was severely lacking during the sale of such a significant stake in EFL, an action that has lasting implications on electricity pricing for Fijians.
While the PAP acknowledged the FCCC’s obligation to adhere to the law and engage with the public, they advocated for a pause on the proposed tariff hike to ensure proper consultation takes place. Balawa contended that it was misleading to place full responsibility for the pricing issue on the FCCC or the current Coalition Government.
“It is disingenuous to suggest this is solely a new problem or to fault the present administration alone,” he asserted. The Coalition Government is now faced with the consequences of earlier decisions, contrasting with the previous administration that did not prioritize public discourse.
The PAP’s position emphasizes their commitment to accountability and transparency in governance, aiming to promote a fairer energy landscape for consumers while addressing the challenges associated with energy pricing and infrastructure investment in Fiji. Their dedication to advocating for the interests of ordinary Fijians highlights a hopeful push towards improved communication and better management of resources essential for the nation’s growth.