There is an increase in the electricity tariff rate for consumers using more than 100 units from 1 January next year.
Fijian Competition and Consumer Commission Chief Executive Officer Senikavika Jiuta confirmed this during a press conference this morning, highlighting that the Commission had earlier rejected Energy Fiji Limited’s proposed 37 percent tariff increase.
She says the tariff increase was approved on 25th September this year.
The FCCC CEO adds that the decision protects vulnerable consumers, with no change in charges for domestic households using up to 100 units of electricity.
Jiuta also says the FCCC will continue to monitor the situation and hold Energy Fiji Limited accountable.
The Chief Executive Officer says approval was granted only because the revised plan is fair to the average consumer, necessary to maintain system reliability and to sustain Fiji’s future energy needs in a sustainable manner.
Jiuta says in Tier Two, which covers usage from 101 to 300 units, the new tariff structure will see a slight increase from 34 cents to 35 cents per kilowatt hour, an increase of about one cent per unit.
Jiuta says this increase will impact 76,952 families, accounting for about 40 percent of EFL’s total domestic customers.
In the third tier, which applies to usage above 300 units, there will be an increase of two cents, from 34 cents to 36 cents per kilowatt hour.
She says this tier represents about eight percent of domestic customers, or approximately 16,000 EFL customers.
For commercial customers, Tier One users will see the rate increase from 40 cents to 43 cents per kilowatt hour, an increase of three cents.
This affects 15,609 businesses, representing about 75 percent of total commercial customers.
Tier Two commercial users will see the rate rise from 40 cents to 50 cents per kilowatt hour, an increase of about nine cents.
This affects 4,158 businesses, or about 23 percent of commercial customers.
Tier Three users will see an increase from 40 cents to 57 cents per kilowatt hour, an increase of about 17 cents—affecting around 670 businesses.
Lastly, Tier Four users will see an increase of 22 cents, from 40 cents to 63 cents per kilowatt hour, impacting approximately 736 businesses.
The CEO clarified that the previous management had denied the application on four grounds, however, the board decision was based on only one issue, the absence of a Renewable Energy Capital Expenditure (Capex) Plan.
She says EFL later submitted its five-year Capex Plan.
When asked whether the public should have been given further opportunities to provide feedback, Jiuta said the same process and figures that were submitted by EFL in 2023 were resubmitted.
She further says that EFL is now focusing on entering agreements with Independent Power Producers, which was not done previously.
The FCCC says the decision follows extensive public consultations in 2023 across the Central, Western, and Northern divisions.
The CEO says the approval of the new tariff comes with strict conditions, including EFL achieving 90 percent renewable energy generation by 2029.
Public awareness sessions will also be rolled out nationwide, giving consumers the chance to understand how the new tariff works, ask questions and learn how to manage their electricity use more efficiently.
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