Consumers and businesses across Fiji are preparing for increased electricity tariffs set to take effect on January 1, with experts warning that the hike could elevate the costs of essential goods and services throughout the nation. Seema Shandil, the Chief Executive of the Consumer Council of Fiji, highlighted the critical role electricity plays as a core input cost affecting almost every sector of the economy. She expressed that any rise in tariffs is likely to lead to increased prices for necessities such as food, transportation, accommodation, and other basic services.
Shandil noted that many households are already grappling with cost-of-living pressures, and further increases in prices could exacerbate financial strains on families. She emphasized the importance of early engagement with both consumers and businesses whenever pricing changes for essential services are considered. While acknowledging that the Consumer Council had submitted recommendations regarding electricity tariffs in 2023, she mentioned that no such opportunity was provided this year for input.
The Council raised concerns regarding accountability and transparency, urging that if consumers are to bear higher charges, there should be clear indicators that the extra revenue is being used effectively, particularly for investments in renewable energy and upgrades to infrastructure that enhance system reliability. Shandil called for transparent reporting on how increased tariff revenues will be spent and emphasized the necessity for regular public updates on capital projects.
From the business perspective, Vinod Kumar, General Manager of Sports World, indicated that retailers would strive to manage some of the cost increases; however, he acknowledged that such efforts would have limits. He stated, “We will try to keep prices reasonable, but if the cost of doing business increases beyond what we can absorb, it will have to be passed on to consumers.” Kumar described the timing of the tariff increase at the beginning of the year as particularly challenging and echoed the need for more comprehensive consultation with businesses prior to finalizing these decisions.
As Fiji navigates these impending pricing changes, it remains crucial for stakeholders to communicate effectively and seek solutions that support both consumer welfare and business sustainability. The situation underscores a vital opportunity for collaboration between the government, utility providers, and the community to ensure that necessary reforms lead to tangible benefits for all citizens.