Prime Minister Sitiveni Rabuka has reiterated the independence of the Fijian Competition and Consumer Commission (FCCC) following the announcement of a new electricity tariff. He emphasized that the decision was made in accordance with the law after a comprehensive technical and financial assessment of Fiji’s electricity sector.
This morning, the FCCC revealed a 24.2 percent increase in the revenue requirement for the utility provider, Energy Fiji Limited (EFL). Rabuka explained that electricity pricing in the country falls within the statutory mandate of the FCCC and is necessary to ensure the reliability, safety, and long-term sustainability of the power supply.
Rabuka was firm in stating that despite the government being the majority shareholder in EFL, it does not interfere with regulatory pricing decisions. He underscored the importance of respecting regulatory independence, noting that it plays a crucial role in fostering investor confidence, financial stability, and the long-term viability of Fiji’s energy sector.
Fiji boasts some of the lowest electricity tariffs in the Pacific, a feat attributed to extensive investments in hydropower and efforts to balance affordability with system reliability. Rabuka cautioned, however, that maintaining these low rates requires ongoing investment in the electricity infrastructure to meet the growing demands of households, businesses, tourism, industry, and digital services arising from Fiji’s economic growth.
The Prime Minister acknowledged that tariff adjustments may pose challenges for consumers but reassured that protective measures are in place. He confirmed that the government continues to offer an electricity subsidy of 16.34 cents per kilowatt-hour to households earning $30,000 or less annually. Notably, under the new tariff structure, approximately 52 percent of electricity consumers using less than 100 kilowatt-hours per month will not experience any increase in their bills.
Rabuka highlighted that a financially sustainable electricity system is critical for national development, energy security, and Fiji’s transition to cleaner and more resilient energy sources. This focus on sustainability and continued investment hopes to pave the way for a brighter energy future for all Fijians.
Leave a comment