Residents of Nadi are likely to face significant financial pressures if the proposed electricity tariff increase proceeds as initially outlined. Lawrence Kumar, President of the Nadi Chamber of Commerce and Industry, has voiced concerns over the potential impact this increase will have on local consumers.
In his comments regarding how local businesses might respond to such an increase, Kumar asserted that it is common practice for business owners to raise prices in response to additional operational costs associated with external factors. He explained, “This is how business is run across the board—if there is any external factor or external cost that needs to be borne in the running of a business, that cost will obviously be passed on to the consumer. No business house is going to absorb the cost and still maintain the cost of services to the consumer.”
Kumar warned that if the Fijian Competition and Consumer Commission follows through with the intended increase, it would exacerbate the cost of living for Nadi’s residents. He highlighted that there is considerable opposition among local businesses to this tariff hike. While acknowledging that the electricity tariff has not been adjusted for several years, he criticized the notion of implementing a sudden increase without sufficient prior notice and consultation.
Furthermore, Kumar emphasized the lack of transparency regarding the necessity of the tariff increase, urging that the decision be postponed to allow for a more thorough discussion and evaluation of its implications.
In response, Energy Fiji Limited (EFL) has explained that the planned tariff increase is aimed at covering operational costs necessary for maintaining a reliable energy supply, as well as supporting initiatives towards renewable energy adoption. They contended that the change was designed with vulnerable communities in mind, ensuring that ordinary citizens, particularly those consuming lower levels of energy, would either be minimally impacted or not affected at all.
As discussions continue, it remains pivotal for both residents and businesses to engage in dialogue around the implications of the proposed changes. This situation highlights the importance of balancing operational necessities with consumer protection in the journey toward sustainable energy solutions.