The Fiji Commerce & Employers Federation (FCEF) has expressed significant concerns regarding the Fijian Competition and Consumer Commission’s (FCCC) recent decision to approve a 24.2% increase in electricity tariffs by Energy Fiji Limited (EFL), set to take effect from January 1, 2026. FCEF Chief Executive Officer Edward Bernard conveyed the private sector’s discontent in a formal letter addressed to FCCC CEO Senikavika Jiuta.
Bernard highlighted that the FCCC’s decision was made without proper consultation with key stakeholders, including businesses that are vital to Fiji’s economy. He referenced that the commission’s approval followed a revised proposal from EFL, which originally sought a far larger increase of 37%. The letter pointed out that the cost of doing business has surged over recent years, with minimum wage rising dramatically and corporate tax also seeing an increase, all of which have strained business operations.
The proposed tariff hike is expected to exacerbate existing financial pressures on companies across various sectors. These businesses are already grappling with challenges such as low productivity and escalating utility costs, with electricity being a significant portion of their expenditures. Bernard voiced concerns that such increases could have detrimental effects on business expansion, investment decisions, and overall market competitiveness, which might hinder national goals of boosting micro, small, and medium enterprises (MSMEs) and increasing investment as a percentage of GDP by the year 2030.
Furthermore, while the FCEF acknowledges the importance of EFL’s investments in renewable energy and capital expenditure, there is a call for transparency and broader engagement with the public and private sectors in decisions that affect all end users. In light of these points, Bernard urged the FCCC to suspend the proposed tariff increase and conduct comprehensive consultations with the private sector. The FCEF has expressed readiness to assist in mobilizing the private sector for these crucial discussions.
As the situation unfolds, there remains hope that the concerns raised by the FCEF will lead to a constructive dialogue, ultimately resulting in decisions that balance the needs of the energy provider with those of the businesses and consumers who rely on its services.
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