The Consumer Council of Fiji has raised concerns over Energy Fiji Ltd’s continued calls for electricity tariff increases despite the company’s return to profitability and strong borrowing capacity.
Making submissions before the Parliamentary Standing Committee on Economic Affairs this week, Consumer Council chief executive Seema Shandil acknowledged EFL’s financial turnaround but questioned whether consumers should bear additional costs.
“In 2023 it (EFL) recorded a net loss of $24.8million, then the following year saw a recovery, with EFL reporting a profit after tax of $7.17million,” Ms Shandil said.
“This reversal is commendable and reflects the genuine efforts to stabilize its finance.”
However, she noted that despite the improved financial position, EFL continued to advocate for tariff increases.
“Given that EFL’s return to profitability in a significant untapped borrowing capacity, what specific internal cost containment and alternative financing measures have EFL exhausted before seeking tariff increases?”
She said transparency was needed before any future tariff review.
“We respectfully suggest that EFL demonstrate with full transparency that it has thoroughly explored all internal cost containment and alternative financial options before seeking any future consumer tariff increases.”
Ms Shandil also pointed to concerns over a $40.7million dividend declared during a loss-making year and substantial consumer security deposits held by the utility.
“When a monopoly provider asks for any tariff increase while paying substantial dividends, while holding millions in consumer deposits and while renewable assets sit idle for a decade, of course customers will ask questions on the fundamental accountability deficit that must be addressed.”
