Energy Fiji Limited (EFL) is introducing a new electricity pricing model aimed at shielding low-income households from the financial impact of rising energy costs as the national power grid expands. In its latest non-confidential electricity tariff proposal, EFL acknowledges that the increasing adoption of rooftop solar energy has altered customer dependency on the grid.
The utility company highlights that higher-income consumers often utilize the grid as a backup while contributing minimally to the overall network expenses. To address this disparity, EFL recommends implementing a two-part tariff structure comprising both fixed and variable charges, moving away from the existing single energy-based system.
EFL emphasizes that the fixed costs associated with maintaining the grid are incurred regardless of electricity consumption levels. Hence, if a fixed charge is not introduced, the remaining customers, particularly low-income earners, could face more significant tariff hikes in the future.
The new pricing framework is designed to ensure equitable contributions from all users, encourage more efficient electricity consumption, and promote the integration of renewable energy sources. EFL also reassured the public that current government subsidies for vulnerable households and schools would remain intact, providing further support to those in need amidst these changes.
This proposed structure represents a proactive step towards a more sustainable and fair energy system, reflecting a commitment to both economic and social responsibility while adapting to evolving energy consumption patterns.
Leave a comment