Minister for Finance Professor Biman Prasad has announced in Parliament that a thorough evaluation of Fiji’s electricity tariff framework is underway. This initiative is designed to ensure that electricity remains affordable for consumers, while simultaneously fostering investor confidence within the energy sector. The government is collaborating closely with Electricity Fiji Limited (EFL) to consider possible adjustments to tariffs, following EFL’s indication that a formal review request may soon be submitted.
Prof. Prasad emphasized the importance of reliable electricity for economic growth, stating, “Tariff stability is equally important to attract investment and protect families from price shocks.” The review will be spearheaded by the Ministry of Finance alongside the Ministry of Public Works, aiming to find a balance between financial returns for landowners and investors, and affordable electricity costs for households and businesses.
EFL is currently engaged in multiple renewable energy projects, including the development of a 21-megawatt solar plant in the Western Division, while also exploring options for hydro, wind, and geothermal energy. Minister Prasad highlighted the government’s willingness to provide guarantees for well-structured financing but cautioned that any new borrowing must comply with Fiji’s debt management strategy. He reiterated the government’s dedication to maintaining energy security without compromising affordability or fiscal responsibility.
This review of the electricity tariff framework is particularly timely, given rising electricity demands and the government’s goal to strengthen its energy infrastructure. The emphasis on renewable energy development showcases a forward-thinking approach to achieving a sustainable energy future. Engaging the public through stakeholder feedback will be a crucial part of this regulatory process.
Ultimately, this initiative reflects a positive commitment from the Fijian government and EFL to cultivate an energy sector that is resilient, sustainable, and accessible to all consumers, thus promoting economic stability and growth throughout the nation.