Dr. Mahendra Reddy, the former Chairperson of the Fiji Competition and Consumer Commission (FCCC), has emphasized the necessity of conducting transparent and inclusive consultations when revisiting electricity tariffs and fees. He pointed out that a consultation held a year ago is inadequate, as economic and social dynamics may have shifted substantially within that time frame. Dr. Reddy highlighted the importance of considering feedback from consumer advocates and government representatives to ensure the protection of citizen welfare.
He raised concerns over governance, pointing out that the Fijian government holds a majority stake in Electricity Fiji Limited (EFL) and questioned whether board members are receiving the appropriate policy guidance from their ministers. Additionally, he commented on public remarks made by the FCCC Chief Executive Officer about differing opinions among Cabinet ministers regarding tariff changes. He cautioned that the CEO of an independent regulatory body should avoid making political statements, as doing so can jeopardize the perceived neutrality and credibility of the institution.
Dr. Reddy also addressed the broader socioeconomic implications tied to electricity tariffs, arguing that electricity should not merely be classified as a private commodity. He asserted that it has become a public good, with changes in tariffs having a direct impact on household welfare, business expenses, trade competitiveness, and overall economic growth. He advocated for funding future capital expansions through capital markets rather than placing the financial burden disproportionately on current consumers, suggesting that adverse effects could be countered via targeted government initiatives.
Dr. Reddy’s insights underscore the need for a thorough and inclusive approach to adjusting energy tariffs in Fiji, recognizing the wider implications that these changes carry for the community and the economy as a whole. This proactive stance could lead to better governance and consumer protection, paving the way for a more equitable energy landscape in the future.
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