The upcoming increase in electricity tariffs have sparked concern that higher operating costs for businesses will be passed directly on to consumers through increased prices for goods and services.
The Consumer Council of Fiji says electricity is a fundamental input cost across almost every sector of the economy, and any rise in tariffs inevitably places upward pressure on consumer prices — particularly for essential items such as food, transport, accommodation and basic services.
The Council stressed that changes to essential service pricing must involve early and meaningful engagement with both consumers and the business community.
It says when tariff adjustments are announced without adequate consultation, households and businesses are left unprepared to absorb the impact.
While the current electricity tariff changes are unlikely to be reversed in the near term, the Council says the lack of prior engagement highlights the need to strengthen consultation processes so stakeholders are informed, heard and able to plan accordingly.
“As electricity costs rise for businesses, there is a very real risk that these increases will be passed directly on to consumers,” said Consumer Council of Fiji Chief Executive Officer Seema Shandil.
“Consumers are already facing significant cost-of-living pressures, and any additional increases in the price of essential goods and services will further strain household budgets.”
Ms Shandil emphasised the importance of dialogue and cooperation between service providers, regulators and the business community to ensure that price adjustments are managed responsibly.
The Council has called for open discussions as businesses adjust to higher electricity costs, warning that electricity price increases should not be used as a blanket justification for disproportionate price hikes.
It says monitoring and restraint will be critical in protecting consumers in the months ahead.
The Council also highlighted the need for accountability, noting that Energy Fiji Limited has consistently cited capital expenditure and infrastructure investment as justification for tariff increases.
“With additional revenue now being generated, consumers expect to see these commitments translated into action,” Ms Shandil said.
“If consumers are paying more, they have a right to expect that these funds are being directed toward tangible improvements.”
She said this should include timely investment in renewable energy, infrastructure upgrades and improved system reliability, rather than a focus on profit growth alone.
Transparency, the Council added, will be essential in maintaining public trust. It is calling for clear reporting on how additional revenue from tariff increases is allocated, along with regular updates on the progress of capital projects.
The Consumer Council is also urging government agencies, regulators and business representatives to closely monitor pricing trends in the coming months to ensure consumers are not unfairly burdened by rising costs.
