Energy Fiji Limited (EFL) has unveiled a proposal for a new electricity pricing framework designed to protect low-income households from rising energy costs while the national power grid continues to expand. In its recent non-confidential tariff submission, EFL highlights the changing landscape of electricity consumption, particularly due to the increasing adoption of rooftop solar panels, which has led some customers to rely less on the main grid.
The utility company points out that higher-income users generally maintain a steady dependence on the grid for backup power while contributing less to the costs of grid maintenance. To rectify this discrepancy, EFL is proposing a two-part tariff system that combines fixed and variable charges, moving away from the existing single energy-based model.
EFL argues that the expenses related to maintaining the power grid are fixed and do not decrease as electricity usage diminishes. Without implementing a fixed charge, there is a risk that the remaining customers—predominantly low-income earners—could experience substantial increases in their tariffs in the future.
The proposed pricing strategy not only aims for fair contributions from all users but also encourages efficient electricity consumption and supports the gradual integration of renewable energy sources into the grid. Significantly, EFL has assured that the current government subsidies for vulnerable households and educational institutions will remain in place, offering critical support to those most impacted by electricity costs.
This proposal marks a proactive step toward creating a more equitable energy pricing structure while fostering sustainability in Fiji’s electricity ecosystem. As EFL moves forward, it underscores its commitment to balancing the needs of all customers while promoting cleaner energy solutions.