I believe we should have had new round of consultations on EFL tariff increase - Finance Minister

Minister for Finance, Commerce and Business Development, Esrom Immanuel stresses that he believes that consultation is a must in every decision making process (application or re-application) where the decision will affect people’s livelihood whether directly or indirectly for a common or a need commodity such as electricity and water.

Immanuel has made this comment to fijivillage News on the Fijian Competition and Consumer Commission's decision on the increase in electricity tariffs.   

He says they had asked for consultations but FCCC reckoned that the consultations done in the 2023 application is sufficient and not needed in EFL’s re-application.

Meanwhile the Fiji Commerce and Employers Federation has strongly recommended that FCCC 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.

We are currently trying to get the comments of the FCCC CEO, the Prime Minister and the Minister for Public Works.