Businesses across Fiji are being encouraged to participate in upcoming public consultations regarding the proposed changes to electricity tariff rates. The Fiji Commerce and Employers Federation (FCEF) has responded to concerns expressed by various businesses about a potential “substantial” increase in electricity costs.
FCEF Executive Officer Edward Bernard emphasized the importance of business involvement in this discourse, urging attendance at the public sessions and submission of written feedback. He welcomed the recent suspension of the tariff increase by the Fijian Competition and Consumer Commission (FCCC) and praised the move as a positive development.
Last December, the FCCC proposed an average tariff increase of 4.5 percent for residential users and around 34.7 percent for commercial customers across multiple usage tiers. The rationale behind these increases is to support $1.57 billion in investments aimed at upgrading the electricity infrastructure over the next four years, resulting in a 24.2 percent revenue increase for the Electricity Fiji Limited (EFL).
However, Bernard cautioned that such a significant rise in commercial rates could elevate operational costs and hinder business growth and competitiveness. He pointed out that the impacts would ripple across sectors, affecting businesses of all sizes and locations. This trajectory could threaten national goals, such as increasing the contribution of micro, small, and medium enterprises (MSMEs) to 22 percent and boosting investments to 20 percent of GDP by 2030.
In response, FCEF plans to compile a consolidated submission and engage directly with the FCCC to represent the private sector’s concerns. The FCCC has also called for participation from domestic consumers, organizations, and political entities, urging them to join the discussions during the scheduled consultations, which will take place across multiple locations from January 6 to January 15.
The consultations are set to cover various divisions, with specific locations and times outlined for public engagement. This initiative reflects an ongoing effort to ensure that the voices of businesses and the wider community are heard in matters affecting their livelihoods and the economy as a whole.
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