Energy Fiji Ltd (EFL) has emphasized the necessity of an appropriate electricity tariff to ensure it can financially support its 10-year Power Development Plan, which is estimated to cost $4.3 billion.
In its 2023 annual report recently presented in Parliament, EFL outlined that the Power Development Plan aims to provide Fiji with adequate power capacity, as well as a reliable and efficient power supply at a reasonable cost.
“This will support economic growth and facilitate a transition from fossil fuel energy to renewable energy,” stated EFL.
Additionally, EFL noted that an appropriate tariff increase would enable the company to attract Independent Power Producers (IPPs) by offering them a reasonable feed-in tariff. As a result, IPPs would invest in the power generation sector, relieving EFL of some of its power generation investments.
EFL submitted its electricity tariff proposal to the Fijian Competition and Consumer Commission (FCCC) in August last year. However, as of the end of 2023, FCCC had not yet responded to EFL regarding the outcome of the electricity tariff review.
“The successful implementation of EFL’s 5-year business plan (2024-2028) depends on the outcome of the electricity tariff review by the regulator, FCCC, which is expected to be delivered in early 2024. The tariff review plays a crucial role in the timely development of the electricity industry, which is essential for economic growth and promoting the Fijian economy,” the company stated.