Dr. Mahendra Reddy, former Chairperson of the Fiji Competition and Consumer Commission (FCCC), has stressed the importance of transparent and inclusive consultation in any review or adjustment of electricity tariffs and fees.
“A consultation undertaken a year ago is insufficient, given that economic, social, and cost structures may have changed significantly over a 12-month period,” Dr. Reddy said, emphasising that the views of consumer watchdogs and government are critical to protecting citizens’ welfare.
He added that failure to conduct timely consultation constitutes a breach of the Fiji Competition and Consumer Act 2010.
Dr. Reddy also raised governance concerns, noting that the Government retains majority shareholding in Electricity Fiji Limited (EFL) and questioned whether Board members are receiving adequate policy direction from their line ministers.
He further commented on public statements by the FCCC Chief Executive Officer regarding Cabinet members’ differing positions on the tariff changes, cautioning that:
“The CEO of an independent regulatory body should refrain from making political commentary at all times, as it risks undermining the perceived neutrality and institutional credibility of the regulator.”
Finally, Dr. Reddy highlighted the broader socio-economic implications of electricity tariffs, saying:
“Electricity should no longer be viewed purely as a private good; it has effectively become a public good.”
“Changes in tariffs directly affect household welfare, business costs, trade competitiveness, and overall economic growth. Funding for future capital expansion should not be disproportionately extracted from current consumers, but financed through capital markets, with any adverse impacts mitigated through targeted government interventions.”
