Energy Fiji Limited (EFL) is proposing an electricity tariff increase of about 32 per cent over four years, saying the rise is essential to finance major upgrades, expand capacity and ensure reliable power supply across the country.
The justification is contained in the utility’s non-confidential electricity tariff submission, now before the Fijian Competition and Consumer Commission (FCCC) for review.
EFL says the increase is tied directly to its reviewed 10-year Power Development Plan, which runs to 2031 and outlines generation and network investments for Viti Levu, Vanua Levu, Taveuni and Ovalau.
“The plan covers a master development program to improve all elements of the power system in Fiji and to ensure adequate and efficient power supply at reasonable cost,” EFL stated.
According to the submission, the total investment required in the power sector to meet projected demand by 2031 is about $4.3 billion. Of this, roughly $1.4 billion is earmarked for upgrades to the transmission and distribution network.
EFL stresses that those network costs would largely fall on the utility.
“These investments…are expected to be funded solely by EFL, as typically there is no economic return from such investments and the reason why the private sector does not invest in the transmission and distribution power systems,” the company said.
While Independent Power Producers (IPPs) are expected to invest around $2.9 billion in new power generation projects over the next decade, EFL argues that strengthening the national grid — so electricity can actually reach homes and businesses — remains its responsibility.
“The investments in the power network systems are essential as they ensure that the energy generated from the new power sources…is successfully evacuated to the load centres to meet the growing demand,” the submission notes.
Without higher tariffs, EFL warns, implementing the Power Development Plan will be “a huge challenge”, particularly the heavy spending required to reinforce power infrastructure.
FCCC will begin consulting the public from January 6 on the tariff proposal, with in-person sessions and online submissions open during the consultation period.
