Energy Fiji Limited (EFL) is facing scrutiny for its failure to fully deliver on capital investment commitments made following an electricity tariff increase approved in 2019. The increase, exceeding two percent, was intended to facilitate the utility’s shift towards renewable energy. However, as another tariff hike is set to be implemented on New Year’s Day, the Fijian Competition and Consumer Commission (FCCC) has issued a warning to EFL, emphasizing the necessity for accountability.
Since the 2019 tariff increase, Fijians have seen a rise in their electricity bills. Avneet Singh, the FCCC Manager of Economic Regulations, highlighted that EFL did not fulfill the renewable energy investment obligations linked to the earlier increase, citing that many planned capital projects were not realized, primarily due to challenges posed by the COVID-19 pandemic.
Moving forward, the FCCC intends to take a more rigorous stance to ensure that the promised projects materialize. In light of this, they rejected EFL’s previous application for a tariff increase in 2024, emphasizing that future submissions must demonstrate tangible progress.
EFL’s recent proposal includes planned capital investments and aims to collaborate with independent power producers to diversify its energy sources. Notably, this initiative marks a significant shift for the company, which historically did not engage with independent power producers. The new agreements require EFL to engage at least five independent power producers, with a strong emphasis on accountability should they fail to meet this commitment.
This new direction offers a hopeful perspective for Fijians, as EFL’s enhanced partnerships with independent power producers could boost renewable energy capacity and foster a more sustainable energy landscape for the future. The commitment to accountability and transparency in the utility’s operations is a positive step toward ensuring that Fijians receive the reliable and sustainable energy services they deserve.