Energy Fiji Limited (EFL) Chief Executive Officer Fatiaki Gibson has clarified issues surrounding the proposed electricity tariff adjustment and the public consultation process currently underway, following recent media commentary.
Gibson stressed that tariff setting is a structured, regulated and evidence-based process, and not an arbitrary decision by the power utility.
He said the proposed adjustment follows internationally recognised utility regulation principles and is carried out under the Electricity Act of 2017.
According to Gibson, EFL’s proposal is informed by a wide range of technical and financial inputs, including audited financial statements, electricity demand and supply data, hydrology and climate variability trends, global fuel price projections, engineering capacity and grid reliability assessments, and long-term generation, transmission and distribution investment planning.
He explained that the Electricity Tariff Methodology (ETM) applies an allowable revenue framework, which considers the regulated asset base, cost of capital, fuel and operational costs, as well as alternative generation pricing.
This methodology, he said, is widely used by electricity regulators around the world as a transparent and objective way to determine tariffs.
“This is not an ad-hoc figure plucked from the air,” Gibson said, adding that the tariff proposal is supported by detailed technical modelling and independent advice from a Big Four audit firm to ensure the long-term reliability and sustainability of Fiji’s electricity system.
While acknowledging the importance of public dialogue on electricity pricing, Gibson said EFL welcomes informed discussion led by the Fijian Competition and Consumer Commission (FCCC).
However, he noted that some recent commentary reflects narrow sector-specific or ideological viewpoints that do not fully take into account Fiji’s long-term national energy security, system reliability and sustainability needs.
