Minister for Public Works and Energy Ro Filipe Tuisawau has recognized that the recently approved increase in electricity tariffs will impact consumers as businesses are likely to transfer their higher operating costs to customers. Tuisawau acknowledged that the adjustment in electricity pricing, set to take effect on January 1, will lead to increased prices for goods and services, particularly affecting essential items.
During discussions surrounding the tariff increase, Tuisawau emphasized the ongoing consultations within the government to seek effective solutions to mitigate the consequences of the price hike on consumers. “What businesses cannot absorb will be faced by consumers,” he stated, highlighting the potential for additional financial strain on households already experiencing cost-of-living pressures.
Consumer Council of Fiji Chief Executive Seema Shandil voiced significant concerns regarding these rising electricity costs, as they represent a fundamental expense for nearly every sector in the economy. She expressed worry that the increase in electricity tariffs could result in direct price hikes in essential goods such as food, transport, accommodation, and basic services, which are already vulnerable to inflationary pressures.
Shandil also critiqued the consultation process, stating that while the Consumer Council had the opportunity to provide input on electricity tariffs in 2023, this year’s discussions lacked similar engagement. She underscored the necessity for Energy Fiji Limited to ensure accountability and transparency regarding how the revenue generated from tariff increases is utilized.
Shandil stressed that if consumers are expected to pay higher rates, they are entitled to see concrete enhancements in service delivery, including upgrades in renewable energy investments and infrastructure improvements. She called for clearer reporting mechanisms on revenue allocation and frequent public updates to ensure consumer interests are addressed.
As energy costs rise, the call for transparency, consumer protection, and meaningful consultation becomes increasingly critical, aiming to safeguard households and businesses facing economic challenges. The sentiment for consumer protection is prominent as discussions continue on how best to navigate the implications of increased electricity tariffs.
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