The Fiji Commerce and Employers Federation (FCEF) is urging the Fijian Commerce and Consumer Competition Commission to delay its decision regarding the proposed increase in electricity tariffs and conduct nationwide consultations with the private sector. Chief Executive Edward Bernard emphasized that these consultations are vital for gathering essential insights that could lead to a more informed and balanced decision-making process.
Bernard expressed support for the Commission’s role as an independent regulator and acknowledged the regulations that guide its operations. However, he highlighted the private sector’s significant concern over the lack of consultations with business organizations, which are pivotal stakeholders and contributors to Fiji’s economy.
The Commission’s decision was derived from a revised proposal submitted by Energy Fiji Limited in 2023, which sought a 37 percent tariff increase. Since then, the cost of doing business in Fiji has significantly escalated, with minimum wage increases exceeding 50 percent, corporate tax hikes of 5 percent, and heightened costs associated with sourcing and maintaining a skilled workforce amid a labor crisis. This environment has been challenging for all businesses, regardless of size or location, with electricity costs already making up a considerable part of their expenditures.
Bernard pointed out that the proposed 24.2 percent tariff increase would further strain business operations, potentially hindering expansion efforts, investment decisions, and overall competitiveness within the market. He warned that such an increase could jeopardize national goals, including boosting the contributions of micro, small, and medium enterprises (MSMEs) to 22 percent and raising investment to 20 percent of GDP by 2030.
While recognizing the importance of investing in Energy Fiji Limited’s renewable energy initiatives and its five-year capital expenditure program, Bernard stressed the necessity for consultations involving the public, government, and private stakeholders who ultimately utilize EFL’s services. This approach would ensure that decisions reflect the realities of the business landscape and the broader economic objectives of the country.