Energy Fiji Limited (EFL) has announced a proposal for a revised electricity pricing structure aimed at safeguarding low-income households from the impact of increasing energy costs amid the ongoing expansion of the national power grid. As outlined in its recent non-confidential electricity tariff submission, EFL notes that the increasing proliferation of rooftop solar panels has altered some customers’ dependency on the main grid.
The company highlights that higher-income users typically maintain a consistent reliance on the grid as a backup source, while contributing less toward the costs associated with maintaining the network. To address this imbalance, EFL is advocating for a new two-part tariff system that incorporates both fixed and variable charges, moving away from the current single energy-based model.
According to EFL, the costs associated with maintaining the grid are fixed and do not decline when electricity consumption decreases. Without introducing a fixed charge component, there’s a risk that the remaining customers—many of whom are low-income earners—could face significant tariff hikes in the future.
The proposed pricing structure not only aims to ensure equitable contributions from all users but also promotes efficient electricity consumption and supports the ongoing integration of renewable energy sources. Importantly, EFL reassures that existing government subsidies for vulnerable households and educational institutions will continue, providing an added layer of support for those most affected by electricity costs.