Reserve Bank of Fiji Governor Ariff Ali has emphasized that any cost increases imposed on businesses will inevitably be passed on to consumers. This comment came in response to Fiji One News’ inquiry regarding the potential implications of a proposed electricity tariff hike on the public.
Ali explained that there is a delicate balance in determining price increases, noting that the Electricity Fiji Limited (EFL) also needs to enhance its efficiency and production capabilities. He stated that it remains too soon to predict the effect of the anticipated price adjustment, as this will depend on any final decisions made regarding the increase.
Highlighting a note of anticipation, Ali remarked on the significance of submissions made by various stakeholders, which will ultimately influence the decision by the Fijian Competition and Consumer Commission (FCCC). He expressed interest in observing the responses from industrial and commercial customers as developments unfold.
In a related press statement, EFL reported a notable increase in electricity demand within Fiji, which surged by approximately 9% in 2024. Expectations suggest that demand could escalate from about 1.1 billion kWh to 1.9 billion kWh over the next four to eight years, aligning with historical trends and anticipated national economic growth along with private investment initiatives.
EFL’s Chief Executive Officer, Fatiaki Gibson, indicated that the current tariff levels hinder the organization’s ability to implement planned investments for infrastructure development effectively. He warned of impending risks, stating that the national grid is already nearing its operational capacity. In scenarios where major generation or transmission assets are offline due to maintenance or outages, the risk of power disruptions significantly increases.
Without necessary tariff adjustments, EFL stated it would struggle to invest in new generation capacity, enhance transmission and distribution networks, and improve the reliability and resilience of the grid. This situation could adversely affect future economic growth and connectivity in the region.
The situation highlights the importance of balancing the need for economic growth with the responsibility to manage energy resources effectively for the benefit of all consumers.
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