Energy Fiji Limited (EFL) is under increasing scrutiny due to its inability to fully adhere to the capital investment commitments linked to a 2019 electricity tariff increase, which was designed to support the utility’s transition to renewable energy. The increase of over two percent aimed to bolster EFL’s infrastructure for cleaner energy production. As another tariff hike is poised to take effect on New Year’s Day, the Fijian Competition and Consumer Commission (FCCC) has issued a stern warning to EFL, highlighting the importance of accountability.
Since the tariff adjustment in 2019, Fijian households have experienced a rise in their electricity costs. Avneet Singh, the FCCC Manager of Economic Regulations, pointed out that EFL did not meet the renewable energy investment targets associated with the previous increase. Many of the proposed capital projects fell by the wayside, primarily due to complications arising from the COVID-19 pandemic.
In response, the FCCC plans to adopt a stricter approach to ensure that EFL delivers on its commitments. Recently, they rejected EFL’s application for a tariff increase set for 2024, stressing that any future proposals must present clear evidence of progress on the promised initiatives.
EFL’s latest proposal encompasses planned capital investments and seeks to forge partnerships with independent power producers, a significant development given the company’s historical reluctance to collaborate with external energy sources. These new agreements stipulate that EFL must work with at least five independent producers, and there is a strong focus on accountability should these partnerships not materialize as intended.
This new direction presents a hopeful outlook for the Fijian population. The strengthened collaborations with independent power producers could enhance the capacity for renewable energy and promote a sustainable energy future. EFL’s commitment to accountability and transparency signals a positive step towards providing Fijians with the reliable and sustainable energy services they need and expect.