Energy Fiji Limited (EFL) is facing scrutiny for not fully delivering on its promised capital investments following a tariff increase granted in 2019, which was intended to support the utility’s shift towards renewable energy. The increase, which exceeded two percent, was aimed at facilitating this transition. However, the Fijian Competition and Consumer Commission (FCCC) is now emphasizing the need for accountability as another tariff increase has been approved, set to take effect on New Year’s Day.
According to Avneet Singh, FCCC Manager of Economic Regulations, EFL has not met the investment commitments related to the previous increase. The utility has cited the COVID-19 pandemic as a significant factor for the shortfall in capital expenditure. Singh stated, “The Capex which we allowed was brought by EFL, and not much was delivered.”
With the upcoming tariff increase, the FCCC plans to adopt a more stringent approach to ensure that EFL adheres to its commitments. Singh noted that last year, the commission rejected EFL’s application for a tariff increase as they failed to demonstrate a sufficient plan, highlighting that in 2024, they would closely monitor EFL’s activities to ensure accountability.
EFL has put forward a new proposal that outlines planned capital investments, which include partnerships with independent power producers. As part of the new accountability agreement, EFL is required to engage at least five Independent Power Producers—a strategy that marks a significant shift in their operational model.
This renewed focus on collaboration with independent entities aims to bolster EFL’s commitment to enhancing its renewable energy capacity. As they move forward, it remains to be seen how effectively these partnerships will be cultivated and whether they can restore public confidence in the utility’s investment promises.
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