Energy Fiji Limited (EFL) has proposed a substantial electricity tariff increase of approximately 32 percent over the next four years. This increase is deemed necessary to finance significant upgrades, expand capacity, and guarantee a reliable power supply throughout the country. The proposal is currently under review by the Fijian Competition and Consumer Commission (FCCC).
EFL’s justification for the tariff rise is directly linked to its updated 10-year Power Development Plan, which extends to 2031 and details extensive generation and network investments across Viti Levu, Vanua Levu, Taveuni, and Ovalau. The company emphasizes that this comprehensive development program aims to enhance all facets of Fiji’s power system, ultimately ensuring that the energy supply remains adequate, efficient, and reasonably priced.
The power sector is projected to require a total investment of approximately $4.3 billion to meet anticipated demand by 2031, with around $1.4 billion allocated specifically for upgrades to the transmission and distribution network. Notably, EFL insists that these network costs will primarily be borne by the utility itself, highlighting that the nature of these investments typically does not yield an economic return, which discourages private sector participation in transmission and distribution systems.
While Independent Power Producers (IPPs) are expected to invest about $2.9 billion in new generation projects over the next decade, EFL maintains that it is responsible for fortifying the national grid to ensure electricity reaches homes and businesses effectively. The utility points out that investment in power network systems is critical to facilitate the delivery of energy from new sources, accommodating the growing demand.
EFL cautions that without an increase in tariffs, executing the proposed Power Development Plan will pose significant challenges, especially regarding the substantial spending needed to bolster power infrastructure.
The FCCC plans to engage with the public regarding the tariff proposal beginning January 6, offering both in-person sessions and online submission options during the consultation period. This engagement will allow residents to voice their opinions and gain a clearer understanding of the necessity behind the proposed changes.
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