The Fijian Competition and Consumer Commission (FCCC) has officially approved a revised electricity tariff increase of 24.2 percent, which is notably less than the 37 percent hike initially suggested by Energy Fiji Limited (EFL). The new tariff rates will take effect on January 1, 2026, and will implement a tiered pricing structure for both domestic and commercial customers, aligning costs more closely with consumption patterns.
FCCC Chief Executive Officer, Ms. Senikavika Jiuta, emphasized that every aspect of the tariff proposal was meticulously analyzed against actual consumption trends, the principles of cost-of-service, and Fiji’s national renewable energy objectives. She stated, “We did not approve the proposed 37 percent increase, and instead allowed 24.2 percent because the revised plan is fair to the average consumer, necessary to maintain system reliability, and essential to securing Fiji’s future energy needs in a sustainable manner.”
The newly introduced tiered pricing for households categorizes electricity usage into three levels:
1. **Tier 1 (0–100 kWh):** No change; approximately 98,843 households (52%) will continue to pay 34 cents per kWh.
2. **Tier 2 (101–300 kWh):** A slight increase to 35 cents per kWh, affecting around 76,952 households (40%).
3. **Tier 3 (Above 300 kWh):** An increase to 36 cents per kWh, impacting about 16,000 households (8%).
As an example, Ms. Jiuta explained that a household consuming 150 kilowatt-hours a month will see their bill increase by a modest 51 cents, while a household exceeding 300 kilowatt-hours will incur an additional cost of about $2.04 monthly.
For commercial customers, the FCCC has structured a four-tier pricing system, which reflects consumption ranging from 0–1,000 kilowatt-hours to those using over 10,001 kilowatt-hours per month. This comprehensive approach aims to balance affordability for consumers while ensuring the sustainability and reliability of Fiji’s electricity supply in the long term.
This revision has sparked discussions regarding the importance of adapting pricing to actual usage and the broader implications for energy sustainability initiatives in Fiji. The move towards a more tiered and reflective pricing model suggests a commitment not only to fair pricing but also to the future stability of the energy sector in the region.
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