Following a substantial increase in international fuel prices and despite fuel rebates by the government, Energy Fiji Limited is requesting 11 cents surcharge on top of the current electricity tariff.
EFL has submitted a request to the Fijian Competition and Consumer Commission for the emergency fuel surcharge adjustment.
While responding to questions by fijivillage News, FCCC CEO Senikavika Jiuta clarifies the cost of electricity will increase but for a short period of time with monthly monitoring and acquittals with EFL.
She explains tariff sets the base charge for the use of electricity and currently domestic consumers are paying $0.38 per kilowatt hour.
Jiuta says when setting tariffs, they look at various components such as operational cost, capital expenditures, investment plans.
The CEO says a fuel surcharge is a temporary additional charge added to the existing tariff.
She says it is to recover fuel cost only and is added to the current tariff for a period of time and then it is removed.
FCCC says they are currently reviewing EFL's submission in full and no determination has been made at this stage.
They say EFL has submitted that due to the recent volatility in global fuel markets, fuel procurement costs have significantly increased, placing pressure on its short-term cash flow.
The Commission says they acknowledge that these cost pressures arise from external market conditions
outside EFL's control and as the national electricity provider, EFL’s financial stability is important to ensure the continued delivery of reliable electricity services throughout Fiji.
They stress that at the same time, they remain mindful that any adjustment to electricity charges has direct implications for households, businesses, and the wider economy.
FCCC says that in light of the urgent nature of the current fuel cost escalation and the need to safeguard the continuity of electricity supply, FCCC is undertaking an expedited assessment process, supported by targeted consultations with relevant stakeholders and technical agencies.
They say this approach is intended to ensure that the Commission is able to respond promptly to evolving market conditions while taking into account the broader public interest, the operational requirements of EFL, and the potential impact on consumers.
FCCC says in carrying out its regulatory assessment, their priority is to strike an appropriate balance between protecting consumers from sudden price shocks while ensuring the sustainability of electricity supply.
They say as per the Commission's mandate to promote fair pricing and safeguard consumer interests, all these factors will be carefully considered in this assessment.
FCCC reiterates that any adjustment approved by the Commission will be subject to conditions
designed to limit the burden on consumers and will be grounded in the evidence contained in EFL's
submission.
The Commission says they remain committed to ensuring that all regulatory decisions are transparent, evidence-based, and made in the best interests of the people and economy of Fiji.
Questions have been sent to EFL on exact adjustment they are asking for. They are yet to respond.
