The Standing Committee on Economic Affairs has raised concerns over Energy Fiji Limited’s continued reliance on imported diesel, increasing debt levels and a lack of transparency in key areas, warning these issues could undermine the long-term sustainability of Fiji’s electricity sector.
Committee Chair Sakiusa Tubuna tabled the committee’s consolidated review of EFL’s 2023 and 2024 Annual Reports in Parliament on Friday.
Tubuna said EFL, as Fiji’s national electricity provider, plays a critical role in supporting economic growth, social development and energy security, but the committee identified several areas requiring urgent attention.
He said the committee was particularly concerned that imported diesel remains EFL’s largest operating cost, leaving the company and consumers vulnerable to fluctuations in global fuel prices.
Tubuna said despite Fiji’s target of generating 90 percent of its electricity from renewable sources by 2035, progress in reducing dependence on fossil fuels is not advancing quickly enough to meet that goal.
The committee also highlighted EFL’s increasing debt levels and ongoing financial pressures, warning that if these are not carefully managed they could affect the company’s long-term financial sustainability.
Tubuna said the review also identified shortcomings in transparency, noting there was limited disclosure on dividends paid to customer shareholders, the treatment of interest earned on customer security deposits and the outcomes of rural electrification programmes.
He said this information is essential to maintaining public confidence, promoting accountability and allowing Parliament and consumers to assess whether EFL is delivering equitable benefits to all stakeholders.
The committee also expressed concern over the significant costs incurred in hiring containerised diesel generators.
Tubuna acknowledged that rising electricity demand and climate-related impacts on hydroelectric generation present genuine challenges, but said the expenditure highlighted the need for stronger long-term planning, timely investment in renewable energy projects and more effective management of generation capacity.
To address the issues, the committee has recommended that EFL develop a clear and measurable Renewable Energy Transition Plan, strengthen its debt management strategies, improve reporting on capital expenditure and provide greater transparency on shareholder and consumer-related financial matters.
Tubuna said implementing the recommendations would improve planning, strengthen financial stability, enhance transparency and ensure investments in the energy sector deliver tangible benefits for consumers and the wider community.
