Inia Seruiratu, the Opposition Leader of Fiji, has raised significant concerns regarding the impending increases in electricity tariffs slated to be implemented on January 1, 2026. He warns that these changes could initiate a detrimental inflationary spiral, particularly affecting the most vulnerable households across the nation. Seruiratu’s apprehensions center on the new tiered tariffs and he has urged the Fijian Competition and Consumer Commission (FCCC) to pause their implementation until a thorough social impact audit is conducted to evaluate the potential repercussions on consumers.
Seruiratu contends that claims made by Energy Fiji Ltd and the FCCC, indicating that 52 percent of domestic customers will not experience any increases due to their low consumption levels, are misleading. He argues that while some households may not see a direct increase in their electricity costs, they will nonetheless feel the strain as the heightened operational expenses for businesses will lead to increased prices in essential goods.
“When you increase electricity prices for commercial sectors such as supermarkets and food processors, you are essentially driving up the cost of food,” Seruiratu remarked. He highlighted that families may continue to pay the same for their electricity usage but would face significantly higher grocery bills. He referred to this situation as an ineffective form of protection, highlighting the additional burden it creates on everyday necessities.
The 24.2 percent revenue increase mandated by the FCCC, according to Seruiratu, could push businesses into a ‘Profit Recovery’ mode, further exacerbating the situation with higher prices for consumers. He specifically pointed out that businesses in rural and remote areas, such as Vanua Levu, Lau, Ovalau, and Rotuma, where logistics costs are already prohibitively high, would feel the strain of these tariff hikes most acutely.
Seruiratu called on the government to reassess the ramifications of the proposed tariffs, suggesting that such increases could hinder investment in key regions targeted for development under the National Development Plan 2025–2029.
In conclusion, he insisted that the tariff hike should be suspended until an independent audit is accomplished and urged the FCCC to ensure that retailers do not exploit elevated electricity costs as justification for further inflating prices of basic commodities. His advocacy reflects an urgent call for careful consideration of the impacts these tariffs could have on Fijian families and the rising cost of living, emphasizing the need for a balanced approach that protects consumer interests.