The Fiji Commerce and Employers Federation (FCEF) is urging the Fijian Commerce and Consumer Competition Commission (FCCC) to postpone its decision on the proposed increase in electricity tariffs, advocating for comprehensive consultations with the private sector before moving forward.
Chief Executive Edward Bernard expressed that such discussions would yield invaluable insights for the Commission, enabling a more balanced and informed decision regarding the proposed changes. The FCEF is prepared to rally the private sector to help facilitate these consultations, demonstrating its commitment to ensuring the concerns of businesses are heard.
While the FCEF respects the FCCC’s authority as an independent regulator, Bernard emphasized the vital need for engaging with business organizations and other key stakeholders who play a significant role in Fiji’s economy. He noted that the FCCC’s decision stemmed from an internal review of a revised proposal by Energy Fiji Limited (EFL), which initially sought a dramatic 37 percent increase earlier this year.
Bernard pointed out that the cost of doing business in Fiji has already surged, highlighting a more than 50 percent rise in the minimum wage, a 5 percent increase in corporate tax, and growing challenges in securing and retaining qualified workers amid an ongoing labor and skills crisis. Furthermore, he underscored that low productivity levels are negatively impacting the profit margins of many companies across various sectors.
These rising costs are increasingly burdensome, with utility expenses, including electricity, constituting a significant portion of business overheads. The proposed 24.2 percent tariff hike is anticipated to exacerbate these financial pressures, potentially stifling business growth, investment decisions, and overall market competitiveness. Bernard noted that this trend poses risks to national objectives, such as increasing the contribution of micro, small, and medium enterprises (MSMEs) to 22 percent and boosting investment to 20 percent of GDP by 2030.
While the FCEF acknowledges the necessity of investing in EFL’s Renewable Energy Capital Expenditure Plan and its upcoming five-year investment agenda, it is crucial that the consultation process includes the perspectives of the public, the government, and the private sector—those who ultimately rely on EFL’s services.
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