THE Fiji Commerce and Employers Federation (FCEF) has strongly urged the Fijian Competition and Consumer Commission (FCCC) to suspend its decision on the proposed electricity tariff increase and undertake nationwide consultations.
Federation CEO Edward Bernard says it is imperative that the public, Government, and the private sector, who are the end users of EFL’s services, are consulted.
“We wish to convey 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,” he said.
“We note that the commission’s decision was based on its internal assessment of a revised proposal submitted by Energy Fiji Ltd (EFL), originally lodged in 2023, seeking a 37 per cent increase.
“Since that time, the cost of doing business in Fiji has risen sharply. Minimum wage has increased by more than 50 per cent (86 per cent over the past three years), corporate tax has risen by 5 per cent, and the cost of sourcing and retaining workers has escalated significantly due to the ongoing labour and skills crisis.
“Low productivity levels continue to erode the bottom line of many businesses.”
Mr Bernard said these pressures were being felt across all sectors, sizes, ownership types, and geographic locations.
“Utility costs, including electricity, already represent a substantial portion of business expenditure.”
He said the proposed 24.2 per cent increase would further elevate these costs, with likely consequences for business expansion, investment decisions, and overall competitiveness.
“This trajectory risks undermining national targets, including increasing MSME contribution to 22 per cent and lifting investment to 20 per cent of GDP by 2030.”
He said EFL’s position as the sole major energy provider in Fiji further underscores the need for broad and transparent engagement.
“We therefore strongly recommend that FCCC suspend its decision on the proposed increase and undertake nationwide consultations with the private sector.
“We believe this essential step will provide the commission with critical insights that support a more balanced and informed decision.” Mr Bernard said FCEF stood ready to mobilise the private sector to support these consultations.
