All businesses in Fiji are strongly encouraged to participate in upcoming public consultations regarding the proposed electricity tariff rate structure and to submit written feedback. This appeal comes from the Fiji Commerce and Employers Federation (FCEF), which has acknowledged numerous concerns expressed by businesses regarding the significant impact of the anticipated tariff increases.
FCEF Executive Officer Edward Bernard highlighted that the federation will continue advocating for a reduced increase rate. He welcomed the decision to suspend the implementation of the proposed rate increase, thanking the Fijian Competition and Consumer Commission (FCCC) for this development. Bernard emphasized the importance of business involvement in the consultations, highlighting that their input is essential for ensuring their voices are heard during this critical feedback period.
Last December, the FCCC disclosed plans to implement a 4.5 percent average increase in electricity tariffs for residential customers using between 101 to more than 300 kWh. For commercial clients, the average rise is projected to be around 34.7 percent across four different usage tiers. These tariff adjustments were framed as necessary to support $1.57 billion in investments for the Energy Fiji Limited (EFL) over the next four years, intended to yield a 24.2 percent increase in revenue.
Bernard noted that the proposed hike in commercial rates could exacerbate the financial strain on businesses, potentially hindering expansion, investment decisions, and overall competitiveness. He expressed concern that the financial pressures could negatively affect various sectors, regardless of business size, ownership type, or geographic location. There are also fears that this increase may thwart national goals, including boosting Micro, Small, and Medium Enterprises’ (MSME) contribution to 22 percent and increasing investment to 20 percent of Fiji’s GDP by 2030.
The FCEF plans to compile a comprehensive submission to present a unified viewpoint from the private sector during discussions with the FCCC. Additionally, the FCCC is inviting participation not just from businesses but from domestic consumers, consumer groups, governmental entities, political parties, social organizations, and youth representatives throughout the consultation sessions.
Consultations are scheduled to take place from January 6 to January 15 across various divisions in Fiji, ensuring widespread opportunities for engagement. Locations include Labasa, Seaqaqa, Savusavu, Sigatoka, Nadi, Lautoka, Suva, and several other towns. Each session is set to occur from 10 AM to 3 PM in designated areas, with some venues yet to be confirmed.
Such collaborative efforts between businesses and regulatory bodies can pave the way for balanced solutions that address the financial concerns of the private sector while also supporting necessary investments for Fiji’s energy future. Engaging in these discussions provides a vital opportunity for stakeholders to advocate for fair pricing that sustains business growth and economic progress.