The Fijian Competition and Consumer Commission (FCCC) has reaffirmed its decision to approve a new electricity tariff despite ongoing debates within the government. Minister for Public Works Ro Filipe Tuisawau expressed concerns about the timing of the decision, labeling it as premature while discussions regarding the tariff were still taking place. He emphasized that the government had communicated its stance to the FCCC, advocating for further dialogue to seek options that could potentially prevent the tariff hike.
In contrast, Prime Minister Sitiveni Rabuka has shown support for the FCCC’s decision, highlighting the Commission’s autonomy in making regulatory choices. FCCC Chief Executive Senikavika Jiuta responded to the Minister’s remarks by reiterating that the Commission operates independently under the law. Jiuta clarified, “We are an independent body, and Section 14 of our Act clearly states that the functions and determinations of FCCC are independent. We understand there may be differing views. To be honest, not all Cabinet members disagree—some also agree.”
The FCCC’s decision was made with the welfare of the country in mind, according to Jiuta, who noted that consumer protection was a priority. Following extensive discussions with Energy Fiji Limited, the FCCC approved a more modest increase of 24.2 percent in the overall revenue requirement, opting against a more significant rise that would adversely affect vulnerable consumers.
The new tariff structure categorizes domestic customers into three usage tiers. Approximately 52 percent of Energy Fiji Limited’s domestic customers, around 98,800 households, will experience no change in their rates, continuing to pay 34 cents per unit for usage up to 100 kilowatt hours per month. For households using between 101 and 300 units, the rate will rise by one cent to 35 cents per unit, impacting around 40 percent of customers with about 77,000 households. Those exceeding 300 units monthly, comprising approximately eight percent of customers, will see an increase to 36 cents per unit, which is a two-cent rise.
To illustrate the impact of this change, a household that consumes 150 units will see its monthly bill rise by just 51 cents, moving from $51.02 to $51.53. Higher-usage households that consume more than 300 units will have their monthly bills go up by about $2.04.
As the FCCC navigates these challenges, it remains committed to balancing the interests of consumers with the sustainability of the electricity market in Fiji, promoting transparency and fairness in the process.