The Standing Committee on Economic Affairs has raised concerns over Energy Fiji Limited’s (EFL) failure to clearly demonstrate how funds collected from electricity consumers through tariffs are being used to improve infrastructure and services.
In its review of EFL’s 2025 Annual Report, tabled in Parliament last week, the committee highlighted a lack of detailed reporting on tariff-funded investments despite the company’s significant infrastructure spending and financing arrangements.
The committee noted that EFL continued to pursue major infrastructure investments, including a syndicated banking facility worth approximately $550 million.
However, it said the annual report failed to establish a clear connection between tariff arrangements and the benefits delivered to consumers.
“The Annual Report does not clearly demonstrate how existing or proposed tariff arrangements are linked to specific infrastructure outcomes, project delivery targets, or consumer benefits,” the committee stated.
“This limits transparency regarding how funds recovered from consumers are contributing to network improvements and service enhancements.”
The committee also raised concerns about EFL’s continued dependence on imported fuel for electricity generation.
It revealed that fuel costs remained the company’s largest single operating expense, reaching $206.91 million in 2025.
Thermal generation accounted for 43.81 per cent of total electricity production, while hydropower contributed 49.31 per cent, down from 51.73 per cent in 2024.
Overall, renewable energy accounted for 56.19 per cent of electricity generation in 2025.
The committee warned that continued dependence on imported fuel exposed both EFL and electricity consumers to fluctuations in global fuel prices and potential supply disruptions.
This comes despite EFL adopting renewable energy targets of 60 per cent by 2029 and 90 per cent by 2035.
The findings highlight the committee’s concerns over transparency in infrastructure financing and the need to demonstrate how electricity tariff revenue translates into tangible improvements for consumers.
