Energy Fiji Limited (EFL) has announced a new proposed electricity tariff structure that departs from the traditional single billing model, aiming for a more nuanced and comprehensive approach from 2024 to 2027. This initiative introduces a combination of fixed, energy, and demand charges designed to better reflect the actual costs of supplying electricity.
The proposed structure includes a daily fixed charge for all customer categories, intended to cover the ongoing expenses related to maintaining the availability of the power system, including infrastructure such as transmission and distribution networks, substations, meters, and customer service, regardless of individual electricity usage.
Energy charges will be based on the kilowatt-hours consumed, applying uniformly to all customer groups. These charges will encompass the costs of electricity generation, factoring in fuel prices and payments made to independent power producers.
Households benefitting from government subsidies will continue to receive support if they consume up to 100 kilowatt-hours monthly, provided they meet specific income thresholds. Furthermore, schools will retain eligibility for subsidies with lower usage levels.
For commercial customers, EFL is implementing a stepped tariff system. Under this system, lower-volume users will enjoy reduced energy rates up to a defined threshold, while those with higher consumption will incur increased rates. A daily fixed charge will also apply to commercial entities.
Industrial customers will face charges based on demand bands, resulting in higher fixed and demand charges for those with greater peak demand. EFL has highlighted that this strategy aims to align tariffs with the costs of constructing and maintaining the necessary infrastructure to support peak electricity loads.
The proposal also retains penalties for customers who fail to achieve a power factor of at least 0.85, as stipulated by the Electricity Act. Non-compliance will lead to reactive energy charges.
EFL asserts that this new tariff structure is essential for encouraging efficient electricity usage, promoting equitable cost-sharing among users, and ensuring a reliable power supply amid rising demand. This proactive approach aims to modernize the electricity service framework, enhancing efficiency for all consumers as the energy landscape continues to evolve.