Energy Fiji Limited (EFL) is proposing a 32 percent increase in electricity tariffs over the next four years. This request comes as the company argues that the current rates are insufficient to fund the necessary investments needed to maintain a reliable power sector in Fiji. In its non-confidential submission to the Fijian Competition and Consumer Commission, EFL noted that electricity demand in the region is growing at an annual rate of approximately four percent.
By 2031, EFL anticipates that meeting this demand will require approximately $4.3 billion in new investments. The company highlighted that there has been no tariff increase since the last review by the FCCC in 2019, despite rising operating costs and an expanded asset base. A significant portion of the proposed investment—around $1.4 billion—is earmarked for upgrading transmission and distribution networks across the four main islands of Fiji.
Importantly, EFL pointed out that the proposed increase, if approved, would still remain below what the tariffs would be if adjusted for inflation. The current average tariff, about 38.4 cents per unit, has been losing value steadily over the past decade. EFL emphasized that without this tariff adjustment, it would face significant challenges in executing its 10-year Power Development Plan, meeting lender requirements, and ensuring a reliable electricity supply that supports economic growth.
This proposed increase could potentially enable necessary developments in Fiji’s energy sector, paving the way for improvements in infrastructure, reliability, and future sustainability.
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