The Fiji Commerce and Employers Federation (FCEF) is calling on the Fijian Commerce and Consumer Competition Commission to postpone its decision on the proposed hike in electricity tariffs and instead hold nationwide consultations with the private sector. Chief Executive Edward Bernard emphasized the urgency of such consultations, stating that they are essential for gathering valuable feedback that can lead to more informed and equitable decision-making.
Bernard acknowledged the Commission’s role as an autonomous regulator and the regulations that shape its work. However, he raised significant concerns regarding the absence of consultations with business organizations, which play a crucial role in Fiji’s economic landscape. The private sector is a vital stakeholder, and their insights are necessary for a balanced approach to the proposed changes.
The call for consultations comes in light of a revised proposal from Energy Fiji Limited, which is seeking a 37 percent increase in electricity tariffs. Businesses across the island nation are already grappling with rising operational costs, including a minimum wage increase of over 50 percent, a 5 percent hike in corporate tax, and escalating expenses related to attracting and retaining skilled workers during a labor crisis. With electricity costs constituting a substantial portion of their overheads, the proposed tariff increase would only exacerbate financial pressures on businesses.
Bernard warned that the suggested 24.2 percent tariff rise could severely impact business operations, stifling expansion opportunities, investment choices, and undermining overall competitiveness in the market. He cautioned that such increases could threaten national objectives, including raising the contributions of micro, small, and medium enterprises (MSMEs) to 22 percent and boosting investments to 20 percent of GDP by 2030.
While emphasizing the importance of funding Energy Fiji Limited’s initiative aimed at developing renewable energy and its comprehensive five-year capital expenditure program, Bernard reiterated the need for inclusive consultations. Engaging public, government, and private sector stakeholders, who are the ultimate consumers of EFL’s services, is essential to ensure decisions align with the realities faced by businesses and the overarching economic goals of Fiji. This collaborative approach could help foster a more sustainable and competitive business environment in the future.