Businesses in Suva and Nadi are expressing significant apprehension regarding the recent electricity tariff hike announced by Energy Fiji Limited. Last week’s announcement has triggered concerns among various sectors, with operators voicing that they will be severely impacted by the increase in their operational costs.
The Fijian Competition and Consumer Commission (FCCC) has defended its tariff decision; however, resistance continues to mount within the business community. Many business leaders argue that the changes, despite the introduction of a tiered tariff system, will still exert pressure on their financial performance.
The Suva Retailers Association, which represents over 170 businesses, criticized the timing of the tariff increase. Association President Jitesh Patel emphasized the importance of public consultation, stating, “It should have been looked into later on, maybe February or after the December–January period is over. Sometimes we feel things are rushed just for the sake of doing it. Consultations are very important.” He further urged the FCCC, despite its independent status, to transparently communicate the data and rationale behind the new rates.
Similarly, Nadi Chamber of Commerce President Lawrence Kumar has expressed discontent with the changes. He indicated that the chamber would formally address the matter with relevant authorities, stressing, “Businesses are not going to sustain that cost, so it will obviously be passed on. Many businesses have shown their dissatisfaction.”
In response to the growing concerns, FCCC CEO Senikavika Jiuta acknowledged that apprehensions from businesses were anticipated. However, he cautioned traders against transferring unjustifiable costs onto consumers, assuring that the commission takes a comprehensive approach when assessing price changes. “This is a component that might increase prices, but it is just one of the components. We take a holistic view and factor everything into our assessments,” Jiuta stated. He also noted that monitoring systems are in place to track price movements effectively.
The new electricity tariff is scheduled to go into effect on New Year’s Day, and as the deadline looms, businesses are ardently seeking clarity and consideration from regulatory authorities. The situation raises essential questions about the balance between regulatory policies and the economic health of local businesses, emphasizing the need for ongoing dialogue to ensure sustainability and growth in the face of rising operational costs.
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