Water tariffs in Fiji are set to be reviewed with the Fijian Competition and Consumer Commission (FCCC) planning to engage external consultants with expertise in urban planning, utility regulation, financial modeling, and tariff setting.
The FCCC stated that the consultants will provide essential insights and recommendations to create a robust and equitable tariff structure, assisting the Water Authority of Fiji (WAF) in achieving its operational goals.
The FCCC also expressed its support for the Government’s decision to corporatize the Water Authority of Fiji, a move aimed at improving WAF’s operational efficiency and financial sustainability to ensure better water services for all Fijians.
Deputy Prime Minister Manoa Kamikamica described this development as a pivotal step towards guaranteeing reliable and high-quality water services for all Fijians.
“This transition is designed to foster greater efficiency and financial stability within WAF, which is essential for the continued growth and development of our nation,” he said.
“We are committed to working closely with FCCC to develop a fair and transparent water tariff structure that balances the need for sustainable operations with the importance of affordability for our consumers.”
FCCC emphasized that a thorough examination of the water tariff structure will be conducted to ensure it reflects the true cost of service provision while remaining fair and affordable for consumers.
CEO Joel Abraham highlighted that Fijians currently pay one of the lowest water tariffs in the Pacific at 15 cents per 1,000 liters. However, this low rate has resulted in WAF receiving only a fraction of the income necessary to operate and invest sustainably.
“Corporatization may lead to cost-reflective pricing, where tariffs are set to cover the full cost of providing water services, including operational costs, maintenance, and capital investments. This shift ensures financial viability but may result in higher tariffs for consumers,” he said.
“FCCC’s role in overseeing tariff setting becomes crucial under corporatization. We will ensure that tariffs remain fair, transparent, and justifiable, balancing the needs of the entity with consumer protection.”
Mr. Abraham added that increased operational efficiency driven by the change could also lead to cost savings, which, if passed on to consumers, could mitigate tariff increases.
He stated that the FCCC will monitor the efficiency gains and their impact on tariffs.
“The structure of tariffs might change, introducing different pricing tiers or mechanisms such as fixed charges, volumetric charges, or seasonal pricing, reflecting the true cost of water usage and encouraging conservation.”