Concerns have intensified regarding a potential increase in electricity tariffs in Fiji, as the implications of such a hike could significantly burden vulnerable populations. Aiyaz Sayed-Khaiyum, former attorney-general and finance minister, stressed that an electricity rate increase would especially impact those reliant on unstable incomes, including individuals on social welfare, workers in the informal sector, and lower-income households already navigating financial hardships.
Sayed-Khaiyum argued that while some proponents claim that households with lower electricity consumption may not feel the brunt of the hike, this view fails to consider broader repercussions. Reports indicate that electricity rates in certain sectors might rise by as much as 37%, with an average increase expected to hover around 25%. He warned that higher energy costs for businesses would likely result in increased prices for essential goods and services, which would further strain the budgets of ordinary Fijians as the cost of everyday items climbs.
Additionally, Sayed-Khaiyum noted that if operational costs for exported goods rise, the competitiveness of Fijian products in global markets could suffer, potentially threatening employment levels associated with exports. Small retail businesses, which are already struggling due to tight profit margins and decreasing consumer spending, could find themselves in even more precarious positions.
Critically, Sayed-Khaiyum called out the Fijian Consumer Commerce Commission (FCCC) for its previous management of electricity tariff hikes. He asserted that the proposed increase could have been averted if the FCCC had followed appropriate procedures and maintained the necessary expertise. He criticized the FCCC’s reliance on consultations held in 2023 to justify a future increase, citing flaws in this rationale given that an earlier proposal had been rejected.
In light of public outcry regarding the potential tariff increase, the FCCC has announced a 21-day public consultation period aimed at engaging with citizens over the impending changes. Information about this upcoming consultation will be made available soon. This situation emphasizes the critical balance needed between necessary economic adjustments and the protection of the most impacted segments of the population, highlighting the ongoing struggle to maintain affordability and economic accessibility within Fiji.