The People’s Alliance Party (PAP) has criticized former Attorney-General Aiyaz Sayed-Khaiyum and the previous FijiFirst Government for the current pressures to raise electricity prices. In response to recent remarks made by Sayed-Khaiyum regarding electricity tariffs, PAP General Secretary Sila Balawa stated that the former attorney-general’s explanation was overly complex and neglected to accept his responsibility in the existing issues faced by consumers.
Balawa asserted that the financial pressure to increase electricity prices directly stems from the decisions made by Sayed-Khaiyum and the FijiFirst administration. He highlighted the 2021 decision to sell 44 percent of Energy Fiji Ltd (EFL) to the Japanese company Chugoku for approximately $1.25 billion, indicating that this fundamental change transformed EFL from a public service provider into a profit-driven enterprise.
He emphasized that once the sale occurred, EFL was expected to generate profits and provide returns to shareholders. The demands for higher revenue were effectively integrated into the system that Sayed-Khaiyum had established, as no major investor commits such a substantial amount without anticipating strong returns.
Furthermore, EFL’s own submission to the Fijian Competition and Consumer Commission (FCCC) revealed intentions to seek a 32 percent increase in electricity tariffs over the next four years, citing that current tariffs do not adequately support its growing investment needs, which are projected to climb by about 4 percent annually.
Balawa noted that EFL estimates an investment requirement of around $4.3 billion by 2031, with approximately $1.4 billion earmarked for transmission and distribution upgrades across Fiji’s primary islands. He remarked that, despite a freeze on tariffs since 2019, EFL’s operational costs and asset growth have persisted.
“It’s important to recognize that these pressures are not coincidental but rather a foreseen outcome of transforming a public utility into a profit-oriented business,” Balawa stated. He also condemned Sayed-Khaiyum for discussing regulation, consultation, and transparency only after the fact, arguing there was insufficient public engagement regarding the sale of nearly half of EFL, which may impact electricity prices for Fiji’s citizens long-term.
While acknowledging the necessity for the FCCC to adhere to the law and engage the public, PAP supported pausing the proposed tariff increase to facilitate consultation. Balawa contended it was misleading to suggest that the responsibility for this issue lay exclusively with the FCCC or the current Coalition Government.
“It is disingenuous to claim this is a new problem, or to place the blame solely on the current administration,” he asserted. The Coalition Government is now confronting the repercussions of past decisions, unlike the previous one, which did not allow for public discourse.
“We will continue to advocate for the interests of ordinary Fijians and prevent those who contributed to these challenges from rewriting history,” Balawa concluded.
The PAP’s stance underscores their commitment to transparency and accountability in governance, aiming to create a more equitable landscape for consumers while navigating the complexities of energy pricing and investment in Fiji’s infrastructure.