The Fijian Competition and Consumer Commission (FCCC) has taken significant steps to address the electricity tariff increase proposed by Energy Fiji Ltd (EFL), ultimately establishing a tiered pricing system intended to minimize the financial burden on households and businesses across the nation.
The newly designed usage-based tiered rates aim to protect over half of EFL’s domestic customers, approximately 98,843 households, from experiencing any hike in electricity rates. Small businesses will also see a reduced impact from the changes. FCCC Chief Executive Officer Senikavika Jiuta emphasized that after thorough evaluation of EFL’s multiple submissions since 2023, the commission opted against the proposed 37% increase, instead allowing a 24.2% increase in EFL’s revenue requirement.
According to Jiuta, this increase was approved due to its fairness to consumers, its necessity for maintaining system reliability, and its importance in ensuring sustainable energy for Fiji’s future. The approved revenue requirement translates into a modest three to six percent rise in domestic tariffs, while commercial customers will see increases ranging from seven to 55%.
Importantly, the FCCC linked the rate increase to the conditions of renewable energy-based power generation, pledging to monitor and assess this framework every six months. FCCC Manager of Economic Regulations, Avneet Singh, noted that the renewable energy initiatives outlined in EFL’s proposal involve investments in two hydropower projects: Vatutokotoko (Lower Ba) and Qaliwana. The Vatutokotoko project is expected to be completed within the next five years, while Qaliwana will continue its development.
Singh highlighted the significance of diversifying Fiji’s energy portfolio, indicating a core investment of $200 million in solar power through partnerships with Independent Power Producers (IPPs). The ambitious target is set for achieving 60% renewable energy from IPPs by 2029, with a goal of reaching 90% renewable energy by 2035.
The introduction of an inclining block tariff structure marks a substantial shift from the existing single-rate model, with plans for a comprehensive review scheduled for 2029. This new approach not only aims to alleviate the financial impact on consumers but also aligns with Fiji’s vision for a sustainable energy future, indicative of a progressive step towards renewable energy adaptation in the region.