Energy Fiji Limited says the proposed tiered tariff structure is designed to protect vulnerable households and small businesses where 97 percent of all customers will be protected.
EFL CEO Fatiaki Gibson says that 191,859 domestic customers and 15,609 small-to-medium commercial customers using 0 to 1,000 units per month are protected and collectively use only 42 percent of total electricity consumption.
He says the remaining 3 percent of high-use customers consume approximately 58 percent of total electricity.
The CEO says this structure aligns contribution with consumption while safeguarding affordability for most Fijians.
Gibson says they recognise the importance of public dialogue on electricity pricing and welcomes informed discussion led by FCCC but some recent views expressed in the media reflect narrow sector-specific perspectives or ideological positions that do not fully consider Fiji’s long-term national energy security, system reliability, and sustainability needs.
He say the proposed tariff adjustment was not arbitrarily determined as it follows a rigorous, regulated, and evidence-based process grounded in internationally recognised utility regulation principles.
He says they relied on audited financial statements, electricity demand and supply data, hydrology and climate variability trends, global fuel price projections, engineering capacity and grid reliability assessments, long-term generation, transmission, and distribution investment planning.
Gibson says the electricity tariff methodology (ETM) applies an allowable revenue framework, which considers the regulated asset base, cost of capital, fuel and operational costs, and alternative generation pricing.
He says this approach is widely used by electricity regulators globally as a transparent and objective means of setting tariffs.
He stresses this is not an ad hoc figure “plucked from the air”, but the result of detailed technical modelling and advice through a Big Four audit firm that ensures the long-term reliability and sustainability of Fiji’s electricity system.
He says the ETM framework operates under the Electricity Act of 2017.
Gibson says electricity demand in Fiji increased by approximately 9 percent in 2024, with projections indicating average growth of around 5 percent per year and demand is expected to rise from approximately 1.1 billion units to 1.9 billion units within the next 4 to 8 years.
He says at current tariff levels, EFL’s ability to convert planned investments into actual infrastructure delivery is constrained.
The CEO says the national grid is already operating close to capacity, and under an N-1 operating scenario, the risk of power disruptions increases significantly.
He says without a tariff adjustment, EFL will be unable to invest in new generation capacity, strengthen transmission and distribution networks, improve grid resilience and reliability and support future economic growth and connectivity.
Gibson says to meet future electricity needs, EFL plans major investments including $653 million in two hydropower projects by 2031 to 2033, $400 million in new solar generation across Western Viti Levu by 2029 and $731 million in new transmission infrastructure by 2033.
He says these investments aim to ensure reliability, reduce fossil fuel dependence, and support national development.
He says EFL is conducting consultation sessions across 17 locations nationwide. These sessions include the distribution of written information, one-on-one discussions, and opportunities for the public to ask questions and provide feedback.
Gibson stresses this approach reflects principles of inclusiveness, transparency, and good-faith engagement.
He adds EFL remains committed to the Government’s National Energy Policy of achieving 100 percent renewable energy, as well as to transparency and accountability, protecting vulnerable customers, ensuring a reliable electricity supply, and supporting Fiji’s long-term energy security.
Meanwhile, many people including the Consumer Council of Fiji and the Fiji Employers and Commerce Federation had asked for a review of the electricity tariff decision by the FCCC as it will drastically affect people.
Their main concerns include the lack of a new round of proper consultations after the EFL's 2023 submission to FCCC was rejected in 2024.
They are also concerned that the cost of non price control items will rise which will affect everyone.
They stress it is not just about people paying minimal increases in their electricity bills or not pay anything more if they use 100 units or less of power.
Although the FCCC is saying it is having consultations, questions are now being raised whether real consultations are taking place.
