Energy Fiji Limited (EFL) has announced a proposal for an electricity tariff increase of approximately 32 percent over a four-year period. This increase is deemed necessary to fund significant upgrades, expand capacity, and ensure a reliable power supply throughout the nation.
The rationale behind this proposal is outlined in EFL’s non-confidential electricity tariff submission, which is currently under review by the Fijian Competition and Consumer Commission (FCCC). The utility company indicated that the increase is directly linked to its revised 10-year Power Development Plan, which extends to 2031 and encompasses generation and network investments across Viti Levu, Vanua Levu, Taveuni, and Ovalau.
EFL explained that the plan includes a comprehensive master development program aimed at enhancing all aspects of Fiji’s power system, ensuring that electricity is supplied reliably and efficiently at reasonable costs. The total investment projected for the power sector to meet demand by 2031 stands at around $4.3 billion, with roughly $1.4 billion allocated for enhancements to the transmission and distribution network.
The company emphasized that the costs associated with these network upgrades will largely fall upon EFL itself. The utility clarified that such investments typically do not yield economic returns, which discourages private sector involvement in the transmission and distribution power systems. In contrast, Independent Power Producers (IPPs) are anticipated to inject around $2.9 billion into new power generation projects over the next decade; however, EFL remains responsible for fortifying the national grid to ensure that electricity can effectively reach homes and businesses.
According to EFL, the investments in enhancing the power network systems are vital for the successful distribution of energy generated from new sources to meet growing demand. Without the proposed increase in tariffs, the company warns that implementing the Power Development Plan will pose significant challenges, especially regarding the substantial expenditures required to bolster power infrastructure.
EFL has indicated that the FCCC will initiate public consultations on the tariff proposal starting January 6, providing opportunities for in-person sessions and online submissions during the consultation phase. This approach aims to engage the community in discussions surrounding the proposed changes and their implications for the future of energy supply in Fiji.