Businesses in Nadi are expressing their concerns regarding a recent electricity tariff increase approved by the Fijian Competition and Consumer Commission, indicating that these costs will be transferred to consumers. Lawrence Kumar, the President of the Nadi Chamber of Commerce, highlighted the dissatisfaction among many local business owners about both the magnitude of the increase and the lack of prior consultation from the regulatory body.
Kumar emphasized that electricity constitutes a significant portion of operating expenses for businesses, and an increase in tariffs cannot be absorbed without repercussions. “How would the businesses cater to those costs? It is going to be passed on to the consumer,” he noted, pointing out that the hike in the Electricity Fiji Limited (EFL) tariff will inevitably impact business operations and sustainability.
Reflecting on the decision-making process, Kumar urged that the FCCC needs to engage more broadly with both businesses and consumers before implementing such changes. He forewarned that the escalating electricity costs will compel businesses to increase the prices of goods and services, thereby affecting consumers who are already grappling with rising living costs.
In response to these challenges, the Chamber is taking steps to formally communicate its concerns with the relevant government ministry and plans to maintain an ongoing dialogue with the FCCC. Kumar expressed a desire for constructive engagement, underscoring the importance of addressing these rising electricity costs in a way that does not further strain consumers already facing financial pressures.
This situation presents a critical juncture for businesses and regulatory bodies alike, emphasizing the need for collaborative solutions that consider the impact on both operators and consumers in the wake of increased operational costs.
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