Energy Fiji Limited (EFL) has unveiled a proposed new electricity tariff structure that moves away from the traditional single energy billing model, aiming for a more comprehensive approach to charging customers between 2024 and 2027. This new structure introduces fixed, energy, and demand charges that aim to reflect the true cost of electricity supply more accurately.
Under the proposal, all customer categories will incur a fixed daily charge. This charge is intended to cover expenses related to maintaining the power system’s availability, which includes transmission and distribution networks, substations, meters, and customer service—regardless of how much electricity individual customers use.
Energy charges will still be based on the kilowatt hours consumed, applied uniformly across all customer groups. These charges account for the costs associated with generating electricity, factoring in fuel expenses and payments to independent power producers.
For households on government subsidies that consume up to 100 kilowatt hours per month, continued support will be available, contingent on meeting specific income thresholds. Schools will also remain eligible for subsidies at lower usage levels.
Commercial customers will experience a stepped tariff system, under which lower-volume users will benefit from a reduced energy rate up to a certain monthly threshold, while those with higher consumption will be subject to increased rates. A fixed daily charge will also be applicable to this group.
Industrial customers are set to be charged based on demand bands, meaning that higher fixed and demand charges will be imposed on those with greater peak demand. EFL emphasizes that this approach is designed to align charges with the costs associated with constructing and maintaining infrastructure capable of accommodating peak electricity loads.
Additionally, the proposal maintains penalties for customers who do not achieve a power factor of at least 0.85, as mandated by the Electricity Act. Non-compliant customers would face reactive energy charges.
EFL believes that this proposed tariff structure is crucial for promoting efficient electricity use, ensuring equitable cost sharing among users, and supporting a reliable power supply in the face of growing demand. As the energy landscape evolves, these changes reflect a proactive step towards modernizing the electric service framework and enhancing efficiency for all consumers.