Energy Fiji Limited (EFL) Chief Executive Officer Fatiaki Gibson has addressed concerns regarding the proposed adjustments to electricity tariffs and the ongoing public consultation process, following recent media discussions on the topic. Gibson emphasized that the process of setting tariffs is systematic, regulated, and based on evidence, rather than arbitrary decisions made by the utility provider.
He detailed that the adjustment of tariffs aligns with internationally accepted principles of utility regulation and adheres to the guidelines established by the Electricity Act of 2017. Gibson’s insights reveal that EFL’s tariff proposal is based on a comprehensive analysis that encompasses various technical and financial elements, including audited financial statements, electricity demand and supply data, trends in hydrology and climate variability, forecasts of global fuel prices, and assessments of engineering capacity and grid reliability.
The methodology utilized in determining tariffs, known as the Electricity Tariff Methodology (ETM), employs an allowable revenue framework which accounts for the regulated asset base, cost of capital, operational costs, and various generation pricing alternatives. This framework is recognized globally as a transparent and objective means for setting electricity tariffs.
“This is not an ad-hoc figure plucked from the air,” Gibson reassured, highlighting that the tariff proposal is backed by detailed technical modeling and independent analysis from a leading audit firm, which ensures the sustainability and long-term reliability of Fiji’s electricity system.
While he recognizes the significance of public dialogue surrounding electricity pricing, Gibson stated that EFL encourages informed discussions facilitated by the Fijian Competition and Consumer Commission (FCCC). He cautioned, however, that some recent commentary reflects narrow perspectives that may fail to consider Fiji’s broader goals regarding energy security, system reliability, and sustainability.
This proactive approach by EFL signifies their commitment to transparency and stakeholder engagement, ensuring that future energy pricing remains aligned with the national interest while also allowing for public participation. The dialogue indicates a positive step toward addressing community concerns while collaborating to maintain Fiji’s energy needs sustainably.
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