The Consumer Council of Fiji has rejected the increase in the electricity tariffs in its current form as the scale of the percentage increases, their inequitable distribution, and the profound indirect economic harms present an unacceptable risk to consumer welfare and economic stability.
In their submission to the Fijian Competition and Consumer Commission, the Consumer Council recommends that FCCC must mandate a comprehensive impact assessment and commission an independent study to model the precise direct and indirect (inflationary) impacts of the proposed increases on different household income brackets and business sectors, using the percentage breakdowns provided in this submission as a basis.
They say careful attention should be given to ensuring that low and middle-income households are protected from disproportionate financial pressure, while also maintaining the financial sustainability of Energy Fiji Limited.
They say assessing distributional effects will help prevent unintended consequences for vulnerable consumers and support equitable access to electricity.
They also recommend that FCCC require EFL to provide detailed, disaggregated information on operating costs, fuel expenses, capital expenditures, and projected revenue from the proposed tariff adjustments.
The Council says this should include a clear distinction between short-term cost pressures and long-term investment requirements, allowing stakeholders to assess whether the proposed increases are necessary, proportionate, and efficiently applied.
They say providing this level of transparency will enable FCCC to make a well-informed decision that balances EFL’s financial sustainability with consumer affordability.
The Council is also urging FCCC to examine EFL’s capital investment plans carefully to ensure that any tariff increases are justified by essential and unavoidable infrastructure needs.
They say before passing costs directly to consumers, alternative financing options, such as government equity contributions, concessional loans, or development partner support, should be explored.
They say this approach ensures that tariff adjustments reflect genuine operational and investment requirements rather than serving as the default funding mechanism for discretionary projects.
They also recommend that FCCC assess the effectiveness of EFL’s risk management measures, including its fuel and foreign exchange hedging program, operational efficiencies, and internal controls.
They say the goal is to determine the extent to which residual risks genuinely require tariff increases, as opposed to being mitigated through internal management.
The Council says this will help ensure that any increase is targeted at unavoidable costs rather than risks that EFL can control or optimise.
They say should any limited, justified adjustments be approved, the FCCC should institute a strict monitoring regime with mandatory public reporting to ensure revenue is applied as intended and performance benchmarks on reliability and efficiency are met.
The Council says FCCC’s regulatory mandate carries a heightened responsibility and any assessment of proposed tariff increases must be grounded in the core principles of proportionality, affordability, and distributional equity.
They say a tariff approval process that overlooks these principles risks rendering this derived right illusory for an increasing number of Fijians.
The Council adds their recommendations are not procedural suggestions, but necessary safeguards to ensure that regulatory decisions actively protect consumer welfare and uphold the effective enjoyment of fundamental rights.
