The Fiji Commerce and Employers Federation has strongly recommended that the Fijian Competition and Consumer Commission suspends its decision on the proposed electricity tariff increase and undertakes
nationwide consultations with the private sector.
FCEF CEO, Edward Bernard has highlighted the private sector’s deep concern regarding the absence of consultations with businesses and business organisations—key stakeholders and major contributors to Fiji’s economy in relation to the recent electricity tariff increase.
Bernard says while they respect the mandate of FCCC as an independent regulator and regulations that guide its work, they note that the Commission’s decision was based on its internal assessment of a revised proposal submitted by EFL, originally lodged in 2023 seeking a 37 percent increase.
Bernard says since that time, the cost of doing business in Fiji has risen sharply.
He says minimum wage has increased by more than 50 percent (86 percent over the past three years), corporate tax has risen by 5 percent, and the cost of sourcing and retaining workers has escalated significantly due to the ongoing labour and skills crisis.
Bernard says low productivity levels continue to erode the bottom line of many businesses, and this pressure is being felt across all sectors, sizes, ownership types, and geographic locations.
He adds utility costs, including electricity already represent a substantial portion of business expenditure.
Bernard says the tariff increase will further elevate these costs, with likely consequences for business expansion, investment decisions, and overall competitiveness.
He says this trajectory risks undermining national targets, including increasing MSME contribution to 22 percent and lifting investment to 20 percent of GDP by 2030.
While the Federation acknowledges the importance of investment in EFL’s Renewable Energy CAPEX Plan and its new five-year capital expenditure program, Bernard says it is imperative that the public, Government, and the private sector who are the end users of EFL’s services are consulted.
Bernard says EFL’s position as the sole major energy provider in Fiji further underscores the need for broad and transparent engagement.
The increase in the Commercial Customer tariff structure varies across the tiers, with Tier One (from 0 to 1,000 units) recording an increase of about 6.2 percent, Tier Two (from 1,001 to 5,000 units) rising by approximately 23 percent, Tier Three (5,001 to 10,000 units) by about 40.6 percent, and the Fourth Tier (10,001 and above units) seeing the highest increase of around 55.5 percent.
Bernard says FCEF stands ready to mobilize the private sector to support the consultations.
We are currently trying to get the comments of the FCCC CEO, the Prime Minister and the Minister for Public Works.
