Fijians, particularly those with unstable incomes, may face significant challenges if electricity tariffs rise, according to former attorney-general and finance minister Aiyaz Sayed-Khaiyum. He expressed concerns that an increase in electricity rates would have a serious negative impact on the Fijian economy, especially for vulnerable groups such as social welfare recipients, individuals in the informal sector, and the working class who are already struggling financially.
Sayed-Khaiyum pointed out that while some supporters of the tariff increase argue it would not affect low-consumption households, they overlook the broader implications. He highlighted that certain businesses might experience hikes in electricity rates up to 37 percent, with the general average expected to be around a 25 percent increase. Businesses facing such significant cost burdens would likely pass these costs on to consumers, leading to increased prices for food, services, and other goods, ultimately straining the budgets of ordinary Fijians.
Additionally, he indicated that the tariff increase would affect price-controlled items, as businesses would seek to adjust pricing in light of their higher operating costs. This rise in expenses has the potential to impact even small retailers, who are already grappling with tight margins and slow sales.
Sayed-Khaiyum also criticized the Fijian Competition and Consumer Commission (FCCC) for its recent actions regarding the electricity tariff increase. He described their rationale for relying on public consultations from 2023 to justify a potential rise in 2025 as flawed. He contended that the previous application for an increase had been formally rejected, which should negate any claims of continuity for future tariff adjustments.
The economic landscape, including factors like the cost of living and household affordability, has changed significantly since the earlier consultations, making older discussions less relevant. Sayed-Khaiyum stressed that relying on outdated consultations undermines meaningful public engagement and highlights the need for updated assessments.
The FCCC has announced a 21-day public consultation on the matter, following the decision to suspend the planned tariff increase set for January 1, 2026. Further details regarding this consultation are expected to be released soon, providing an opportunity for public input on a critical issue for many Fijians facing rising living costs.
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