Get ready for possible power rationing from next month as Energy Fiji Limited has today advised the people of Fiji that the country’s electricity system is facing serious operational and financial pressure arising from the ongoing global fuel crisis, increasing dependence on thermal generation, and worsening dry season hydrological conditions.
EFL confirms that without urgent fuel cost recovery support, the company will be required to implement controlled load shedding and, in more severe circumstances, nationwide power rationing from next month.
The company says the situation follows unprecedented volatility in international fuel markets caused by geopolitical tensions in the Middle East and disruptions to global fuel supply chains, including instability around the Strait of Hormuz.
EFL says brent crude oil prices recently surged to exceptionally high levels and continue to remain well above EFL’s original fuel budget assumptions.
EFL says current generation costs in Viti Levu are: Industrial Diesel Oil : 86.70 cents per kWh compared to an average selling tariff of 38.4 cents per kWh, resulting in a loss of 48.30 cents per unit generated. Heavy Fuel Oil (HFO): 44.64 cents per kWh compared to an average selling tariff of 38.4 cents per kWh, resulting in a loss of 6.24 cents per unit generated.
EFL says they are currently operating in an environment where thermal electricity generation is being supplied below full cost recovery levels, resulting in significant operational losses from March, April and continuing through this month of May.
At the same time, Fiji is entering the annual dry season, placing additional pressure on hydro generation capacity at Monasavu.
The Monasavu Dam level was recorded at approximately 736 metres to date, below EFL’s preferred dry season operating level of above 740 metres.
Forecasts also indicate that renewable generation may reduce to approximately 30 percent to 35 percent during the dry season, with thermal generation expected to increase to 65 percent to 70 percent of total electricity generation demand.
EFL confirms that hydro conservation measures have already commenced, including reducing Wailoa hydro generation to preserve dam water levels for the months ahead to reach the next rainy season.
The company warns that if rainfall conditions deteriorate further and fuel supply risks intensify, Monasavu Dam levels could fall to critical minimum operating thresholds later this year.
EFL stresses that any controlled power rationing or load shedding measures would be implemented carefully to preserve national electricity security and extend available fuel stocks and its ability to pay for fuel from its suppliers.
The company also confirms that essential services including hospitals, water and sewerage systems, emergency services, national security infrastructure, airports, ports, and key public services, etc, would continue to receive priority protection under all contingency scenarios.
EFL’s financial projections indicate that, without adequate fuel recovery support, operating cashflows are expected to be negative from July 2026, liquidity pressures will increase significantly during the second half of 2026, cash reserves are projected to deteriorate rapidly and existing financing facilities may no longer be sufficient to sustain ongoing operations.
The EFL Board has reached out to the line ministry and the Minister of Finance to seek budget support for the months of March, April and going forward from May to December 2026.
The company is still waiting for a determination on the Fuel Surcharge application to FCCC and effective date with an Interim Tariff Adjustment Framework agreed.
It further approved an Operational Response Framework linked directly to the level of fuel recovery support received.
It says under the approved framework, EFL will continue normal operations if full fuel recovery support for March and April 2026 is received by 22nd May 2026, and if only partial support is received, EFL will implement controlled rotational load shedding from 1st June 2026.
If no recovery support is received, EFL will commence controlled national power rationing from 1st June 2026 following public notification.
EFL acknowledges the support already provided by the Government of Fiji, including temporary fuel duty concessions and ongoing engagement with development partners regarding fuel supply support and concessional financing arrangements.
They say the current situation is being driven primarily by extraordinary global fuel market conditions beyond Fiji’s control and is looking to the Government and the Regulator to assist in a timely manner and early intervention, to avoid widespread electricity disruptions.
