Fiji Electricity Tariff Delay Urged as Businesses Call for Nationwide Consultations

The Fiji Commerce and Employers Federation (FCEF) is calling on the Fijian Competition and Consumer Commission (FCCC) to postpone its decision regarding a proposed electricity tariff hike. FCEF emphasizes the importance of engaging in nationwide consultations with the public, government, and private sector before moving forward with any changes.

FCEF CEO Edward Bernard expressed deep concerns over the lack of consultation with businesses and organizations that play a crucial role in Fiji’s economy. He pointed out that the FCCC’s decision was based solely on an internal assessment of a revised proposal from Energy Fiji Ltd (EFL), which originally requested a 37 percent increase in tariffs. Since the proposal was submitted in 2023, the economic landscape has changed significantly, with rising costs affecting businesses on many fronts.

Bernard highlighted the sharp increase in the cost of doing business in Fiji. Minimum wage has surged over 50 percent, with a cumulative increase of 86 percent in the last three years, alongside a 5 percent rise in corporate tax. Additionally, challenges in sourcing and retaining skilled workers due to an ongoing labor crisis have exacerbated operating costs.

He noted that utility expenses, particularly electricity, already form a significant portion of business expenditure. The potential 24.2 percent tariff increase poses a threat to business viability, expansion, investment choices, and overall competitiveness. Bernard warned that failing to address these concerns could obstruct national goals aimed at bolstering micro, small, and medium enterprises (MSMEs) and increasing investment levels to 20 percent of GDP by 2030.

In light of EFL’s position as the primary energy supplier in Fiji, Bernard urges the FCCC to engage with stakeholders to gain a comprehensive understanding of the situation before finalizing any tariff increases. He expressed FCEF’s readiness to facilitate the private sector’s involvement in these crucial consultations to ensure that decisions are balanced and informed.

The call for engagement highlights an opportunity for the FCCC to reconsider its approach and work collaboratively with key stakeholders to ensure the economic health of Fiji remains a priority.