The Fiji Commerce and Employers Federation (FCEF) is urging the Fiji Competition and Consumer Commission (FCCC) to nullify its decision made on December 19, 2025, concerning electricity tariffs and to initiate a new review process. This request comes following a meeting at the Civic Centre in Suva, where the FCEF presented its objections to the proposed increase in electricity tariffs.
The controversy centers around the commission’s approval of the Energy Fiji Limited’s (EFL) application for a significant 34.7 percent increase in electricity rates. FCEF contends that this decision is fundamentally flawed due to a lack of proper consultation and reliance on incomplete data that prevents stakeholders from adequately evaluating the reasoning behind the proposed increase.
Eldon Eastgate, President of FCEF, emphasized the serious flaws in the determination, stating, “The 19 December tariff determination is fundamentally flawed — procedurally, economically, and legally. It was made without genuine consultation and relies on incomplete, undisclosed information.” He also pointed out contradictions in EFL’s claims about a financial crisis, noting that despite a reported loss of $24.8 million in 2023, EFL paid out $40.7 million in dividends and possesses over $52 million in customer deposits alongside low debt levels.
FCEF argues that this tariff hike unfairly shifts the costs associated with under-investment in renewable resources onto consumers and businesses during a time of increasing financial strain, including higher wages, taxes, and inflation. The Federation has identified seven critical issues with the tariff determination process, including a failure to ensure transparency, inadequate consultation, and non-compliance with the Electricity Act.
Furthermore, the Federation criticized EFL for its heavy reliance on diesel fuels, which led to a staggering $211 million fuel bill, while highlighting that investment in renewable energy has drastically decreased from 0.3 percent in 2019 to just 0.07 percent in 2024. They noted that earlier investments in renewables could have mitigated current cost increases.
FCEF’s Chief Executive Officer, Edward Bernard, reiterated the Federation’s support for electricity infrastructure investments but insisted that the process leading to the tariff increase is flawed. “Our objection is not to investment. It is to a process that has not demonstrated that the proposed approach is the most efficient, least-cost, and fair outcome for consumers and the economy,” he stated.
To address these concerns, FCEF has called on the FCCC to disclose EFL’s full tariff application, conduct independent assessments, facilitate a 60-day public consultation, and audit the proceeds from the 2018 privatization. They have also recommended freezing dividends until debt and renewable energy targets are met and offsetting existing funds against future revenue requirements.
This ongoing dialogue highlights the FCEF’s commitment to protecting the interests of businesses and consumers in Fiji while advocating for a more sustainable and equitable approach to energy pricing.
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