Consumers and businesses in Fiji are preparing for an electricity tariff increase set to commence on January 1, raising concerns that this rise could elevate the cost of essential goods and services throughout the nation. Seema Shandil, the Chief Executive of the Consumer Council of Fiji, highlighted the critical nature of electricity as a key input cost affecting various sectors. She warned that such hikes in tariffs are likely to result in higher prices for necessities including food, transport, and accommodation, especially as many households are currently grappling with financial pressures.
Shandil stressed the importance of engaging both consumers and business communities early on when contemplating changes to pricing for essential services. In 2023, the Consumer Council did provide recommendations regarding electricity tariffs, but this year, they were not given the opportunity to submit their views, which Shandil found concerning.
The Council expressed apprehensions over the transparency and accountability surrounding these tariff increases, pointing out that Energy Fiji Limited (EFL) has frequently cited the need for capital expenditure and infrastructure investment as reasons for raising rates. Shandil insisted that if consumers are to bear increased costs, they deserve to see that the extra funds contribute to tangible improvements, such as advances in renewable energy and upgrades in infrastructure that enhance system reliability, rather than merely focusing on profit growth.
Moreover, she called for clear reporting on the allocation of revenue from these tariff increases and for regular public updates informing how capital projects are progressing to ensure consumers can see demonstrable benefits from the higher charges.
From the business perspective, Vinod Kumar, General Manager of Sports World, indicated that retailers would attempt to absorb some of the increased expenses resulting from the tariff hike but acknowledged the limits to this approach. If operational costs rise significantly, he mentioned that businesses would have no choice but to pass those costs onto consumers. Kumar also noted that the timing of the tariff increase at the beginning of the year poses challenges and he advocated for a more comprehensive consultation process with businesses before a final decision on the tariffs was made.
In light of these issues, it is crucial for stakeholders involved, including the government, EFL, and consumer advocacy groups, to collaborate in seeking solutions that balance the need for sustainable energy developments with the need to protect consumers from soaring costs. By fostering open dialogue and transparency, there is hope for a more equitable outcome that can alleviate some of the financial burdens faced by Fiji’s families and businesses.
Leave a comment