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Rise in electricity cost for businesses will likely be passed onto consumers - Consumer Council

Rise in electricity cost for businesses will likely be passed onto consumers - Consumer Council

By Navitalai Naivalurua
23/12/2025
Ms. Seema Shandil
Consumer Council of Fiji CEO Seema Shandil says as electricity costs rise for businesses, there is a very real risk that these increases will be passed directly on to consumers, and when tariff adjustments are announced without adequate consultation, households and businesses are left unprepared. 

The Council is calling for open discussions to ensure that price adjustments are managed responsibly and that electricity cost increases are not used as a blanket justification for disproportionate price hikes. 

It states that electricity is a fundamental input cost for businesses across almost every sector of the economy, and changes to its pricing inevitably place upward pressure on consumer prices, particularly for essential items such as food, transportation, accommodation, and basic services.

They emphasise that any process involving changes to essential service pricing must include early and meaningful engagement with consumers and the business community. 

The Council says while the current tariff changes are unlikely to be reversed in the near term, the absence of prior engagement highlights the need to strengthen consultation processes going forward so that stakeholders are informed, heard, and able to plan accordingly.

Shandil says consumers are already facing significant cost-of-living pressures, and any additional increases in the price of essential goods and services will further strain household budgets.

Shandil says this is why dialogue and cooperation between service providers, regulators, and the business community is so important at this stage.

She adds that monitoring and restraint will be critical in protecting consumers in the months ahead.

The Council also stresses the importance of accountability, as Energy Fiji Limited has consistently cited the need for capital expenditure and infrastructure investment as the justification for tariff increases. 

They say that with additional revenue now being generated, consumers expect to see these commitments translated into action. 

The CEO says if consumers are paying more, they have a right to expect that these funds are being directed toward tangible improvements.

Shandil says this includes timely investment in renewable energy, infrastructure upgrades, and system reliability, rather than a focus on profit growth alone.

She highlighted that transparency will be essential in maintaining public trust. 

The Consumer Council also calls for clear reporting on how additional revenue from tariff increases is being allocated and for regular updates on the progress of capital projects. 

They say consumers must be able to see measurable outcomes that demonstrate the benefits of higher electricity charges.

The Council also urges all stakeholders, including government agencies, regulators, and business representatives, to closely monitor pricing trends in the coming months.

We have sought comments from the FCCC CEO, the Prime Minister and the Minister for Public Works on the electricity tariff increase. They are yet to respond.
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