Fiji Labour Party leader Mahendra Chaudhry has accused state-owned Energy Fiji Ltd (EFL) of exploiting the global fuel crisis to justify a proposed increase in electricity charges, while threatening nationwide power rationing that he says is unnecessary after the government provided targeted fuel subsidies. Chaudhry told reporters on Wednesday that EFL had “no justification” for looming outages or for seeking an 11-cent surcharge on tariffs given the support in the government’s recent $56 million relief package aimed at stabilising power supply.
The relief package, announced by the government this month in response to rising international fuel prices, includes a 20-cent-per-litre rebate on industrial diesel and a 12-cent-per-litre rebate on heavy fuel oil — supplies EFL relies on to drive thermal generation during periods of high demand or constrained hydropower output. Chaudhry argued those rebates should blunt much of the cost pressure EFL cites and accused the utility of “holding the country to ransom” by threatening rationing while pushing for higher bills.
Chaudhry also questioned the financial imperative for a surcharge, pointing out that EFL recorded a $7 million profit last year despite repeatedly seeking tariff increases. “If the EFL board and management don’t have the skills and the ingenuity to handle complex situations, they must step down,” he said, framing the dispute as one of management competence as well as public interest. He warned that planned or threatened power cuts would damage businesses, reduce working hours and wages, and further strain the tourism sector still recovering from pandemic-era shocks.
Consumer advocates have estimated the proposed 11-cent addition would add about $33 a month to the electricity bills of average-income families — a figure Chaudhry said would worsen inflationary pressures and deepen the cost-of-living crisis for ordinary households. The Fiji Labour Party has formally called on the government to reject the fuel surcharge and to require EFL to use the relief measures to stabilise supply without passing on extra costs.
The development comes against the backdrop of heightened international fuel-price risk, including tensions in the Middle East that have raised concern about supply through critical chokepoints such as the Strait of Hormuz. Regulators and industry bodies have warned that Fiji, as a fuel-importing country, is exposed to global price volatility. Nonetheless, Chaudhry’s intervention underscores a domestic political fight over who should absorb rising costs — taxpayers through subsidies, utility shareholders, or electricity consumers via higher tariffs.
EFL has previously warned of upward pressure on its operating costs because of global fuel price movements and has sought adjustments to tariffs at times in recent months. The government’s $56 million relief package was framed as a measure to shield consumers and the economy, but Chaudhry’s criticism suggests scrutiny will intensify over how those funds are applied and whether EFL’s pricing proposals are justified.
The government has yet to publicly state whether it will approve EFL’s surcharge request or intervene further on the utility’s operational plans. With households, small businesses and the tourism sector watching closely, any decision on the 11-cent levy and the threat of rationing will have immediate economic and political consequences.