Energy Fiji Limited (EFL) has revealed a proposed new electricity tariff structure aimed at more accurately reflecting the true costs of power supply. This shift, outlined in its non-confidential submission, reconfigures billing from a single energy-based model to one that includes fixed, energy, and demand charges for the years 2024 to 2027.
Under the new proposal, all customer categories will incur a fixed daily charge, which is intended to cover the essential costs of maintaining the electricity supply system. This includes expenses related to the transmission and distribution networks, substations, meters, and customer services, regardless of individual electricity consumption.
Energy charges, which are determined by the number of kilowatt-hours consumed, will still apply across the board. These charges will account for the costs involved in electricity generation, factoring in fuel expenses and payments to independent power producers.
The initiative also maintains government support for subsidized domestic households that use up to 100 kilowatt-hours per month, contingent upon meeting certain income thresholds. Additionally, schools will continue to qualify for subsidies at lower usage levels, ensuring that educational institutions can manage their energy costs effectively.
For commercial customers, a stepped tariff system will be implemented. This means that those consuming less electricity will benefit from a lower energy rate up to a designated monthly limit, while higher usage will lead to increased charges. A fixed daily charge will similarly apply to this category.
On the industrial front, customers will be billed based on demand bands, where those demonstrating greater peak demand will face higher fixed and demand charges. This approach is designed to reflect the substantial costs associated with building and maintaining infrastructure to accommodate peak electricity loads.
EFL has chosen to retain penalties for customers who do not meet a minimum power factor of 0.85, as stipulated by the Electricity Act, which will result in additional reactive energy charges. The proposed tariff structure aims to encourage efficient electricity usage, promote equitable cost distribution, and ensure reliable power supply amidst rising demand.
This initiative underscores EFL’s commitment to adapting its pricing strategy to prepare for the future of energy consumption, while also ensuring that all customer categories are treated fairly in the transition towards a more sustainable and efficient electricity market.
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