Energy Fiji Limited (EFL) has addressed the concerns related to its proposed electricity tariff adjustment, asserting that the process is regulated, evidence-based, and crucial for securing the long-term energy requirements of Fiji.
EFL Chief Executive Officer, Fatiaki Gibson, explained that the tariff proposal adheres to a structured methodology as outlined in the Electricity Act 2017. This proposal is grounded in audited financial data, trends in electricity demand, climate variability, fuel price forecasts, and comprehensive technical evaluations. He emphasized that the adjustment is not a spontaneous decision but one formulated through detailed modeling with expertise from a leading Big Four audit firm.
Gibson highlighted that electricity demand surged by approximately nine percent in 2024, with expectations of an average annual growth rate of five percent, nearly doubling the demand within the next decade. He cautioned that without adjusting the current tariff levels, EFL would struggle to invest sufficiently in new generation capacities, grid enhancements, and system resilience, thereby increasing the potential for power disruptions.
Notably, the proposed tariff structure aims to protect vulnerable households and small businesses, with around 97 percent of customers categorized as protected. The plan indicates that customers with higher electricity consumption, who typically account for the majority of usage, would bear a heavier burden under the new structure.
To fulfill the anticipated future demand, EFL has outlined investment plans exceeding FJ$1.7 billion. These investments will focus on major projects in hydropower, solar energy generation, and improvements in transmission infrastructure, all aimed at enhancing reliability and reducing the dependency on fossil fuels.
Gibson further added that EFL has conducted open and inclusive public consultations, hosting sessions in 17 locations across the country to enhance transparency and encourage community involvement. This proactive approach reflects EFL’s commitment to engaging with the public and addressing their energy needs effectively.
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