The Fijian Competition and Consumer Commission (FCCC) is set to review water tariffs with the assistance of external consultants skilled in urban planning, utility regulation, financial modeling, and tariff setting.
These consultants are expected to offer critical insights and recommendations to develop a robust and fair tariff structure, aiding the Water Authority of Fiji (WAF) in achieving its operational targets.
The FCCC has also welcomed the Government’s decision to corporatize the Water Authority of Fiji. This move is aimed at enhancing WAF’s operational efficiency and financial sustainability, ultimately ensuring improved water services for all Fijians.
Deputy Prime Minister Manoa Kamikamica described it as a crucial step forward to ensure all Fijians have access to reliable and high-quality water services. He highlighted that the transition is intended to foster greater efficiency and financial stability within WAF, which is essential for the continued growth and development of the nation. Kamikamica emphasized the commitment to collaborating closely with the FCCC to create a fair and transparent water tariff structure that balances sustainable operations with affordability for consumers.
As part of the review process, the FCCC will thoroughly examine the water tariff structure to ensure it reflects the true cost of service provision while remaining fair and affordable for consumers. Currently, Fijians pay one of the lowest water tariffs in the Pacific at 15 cents per 1,000 liters. However, this low rate has resulted in WAF receiving only a fraction of the income necessary for sustainable operation and investment.
CEO Joel Abraham noted that corporatization might lead to cost-reflective pricing, where tariffs cover the full cost of providing water services, including operational costs, maintenance, and capital investments. While this shift ensures financial viability, it may result in higher tariffs for consumers. FCCC’s role in overseeing tariff setting becomes crucial under corporatization, ensuring that tariffs remain fair, transparent, and justifiable, balancing the entity’s needs with consumer protection.
Abraham added that enhanced operational efficiency could lead to cost savings, which, if passed on to consumers, could mitigate tariff increases. The FCCC will monitor efficiency gains and their impact on tariffs.
The structure of tariffs might change by introducing different pricing tiers or mechanisms such as fixed charges, volumetric charges, or seasonal pricing, reflecting the true cost of water usage and encouraging conservation.