The Fiji Commerce and Employers Federation (FCEF) remains committed to advocating for lower electricity tariffs as the Fijian Competition and Consumer Commission (FCCC) initiates public consultations starting tomorrow. Edward Bernard, the Chief Executive of FCEF, emphasizes the importance of businesses participating in these sessions and submitting written feedback regarding the proposed increase in electricity rates.
Bernard has noted that the Federation has been inundated with concerns from businesses about the implications of a significant tariff hike. The recent suspension of the proposed tariff increase has been welcomed by the Federation, acknowledging the FCCC’s decision.
The chief executive pointed out that the proposed average increase of 34.7% for commercial users could severely impact operating costs for businesses across the board. This increase not only poses challenges for business growth and investment but also threatens national economic objectives including enhancing the contribution of micro, small, and medium enterprises (MSMEs) to 22% and raising investments to 20% of GDP by 2030.
In response to the potential economic repercussions, the FCEF is preparing a consolidated submission to voice the concerns of the private sector and plans to seek a direct dialogue with the FCCC.
Previously, on December 19, the FCCC announced electricity tariff increases, where residential consumers using between 101 and 300 kilowatt-hours faced an average increase of 4.5%, while commercial customers braced for an average rise of about 34.7% across various usage tiers. These adjustments are aimed at facilitating Energy Fiji Limited’s substantial $1.57 billion investment initiative planned over the next four years.
This situation presents an opportunity for businesses to influence decisions that could shape the future economic landscape of Fiji, underscoring the need for engagement and proactive participation in the upcoming consultations.
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