Energy Fiji Limited (EFL) has released details regarding its proposed electricity tariff structure, which aims to modernize how customers are billed by moving away from a singular energy-based model. The submission outlines a comprehensive tariff system that consists of fixed, energy, and demand charges, reflecting the true cost of electricity provision.
Under this new structure, all customer categories will incur a fixed daily charge. This fixed fee ensures the continuous availability of the power system, covering essential components such as transmission and distribution networks, substations, meters, and customer service, regardless of individual electricity consumption levels.
Energy charges will still apply across all customer groups, based on kilowatt hours consumed. These charges encapsulate the costs associated with electricity generation, including fuel expenditures and payments to independent power producers.
For subsidized domestic households that use up to 100 kilowatt hours per month, government support will remain in effect, contingent on meeting specific income criteria. Additionally, schools are set to retain eligibility for subsidies, provided they operate within lower usage parameters.
For commercial entities, EFL proposes a stepped tariff system, where lower-volume users enjoy reduced energy rates up to a defined monthly limit, while those with higher consumption levels are subject to elevated rates. A fixed daily charge will also apply in this category.
Industrial customers will face charges based on demand bands, with increased fixed and demand charges for those displaying higher peak demand levels. This pricing model accurately reflects the costs associated with constructing and maintaining the infrastructure necessary to accommodate peak electricity needs.
The proposed tariff structure will also maintain penalties for customers who do not uphold a power factor of at least 0.85, as stipulated by the Electricity Act. Non-compliance will result in reactive energy charges.
EFL emphasizes that the new tariff proposal is designed to encourage efficient electricity use, ensure equitable cost distribution among consumers, and support a reliable electricity supply as future demand continues to rise. This initiative reflects a forward-thinking approach to energy management in the region, promising a more sustainable and equitable energy future for all customers.