The Fijian Competition and Consumer Commission (FCCC) has endorsed Energy Fiji Ltd’s (EFL) transition towards renewable energy but cautioned that major infrastructure investments and rising debt levels will require careful management to protect consumers from unnecessary costs.
Making submissions on EFL’s 2023-2024 Annual Reports before the Parliamentary Standing Committee on Economic Affairs this week, FCCC general manager people, culture and corporate services Vinitesh Kumar said the regulator welcomed EFL’s continued investment in renewable energy projects.
“In terms of renewable energy transition, FCCC acknowledges EFL’s ongoing investments in initiatives aimed at increasing the share of renewable energy in Fiji’s electricity generation mix,” Mr Kumar said.
He pointed to major projects outlined in EFL’s 2024 Annual Report, including the Qaliwana Hydro Scheme, Namosi Hydro Scheme, solar developments in Ba, Tavua and Nadi, the Ovalau solar projects and the Taveuni Solar Farm.
“From the regulators perspective, this move is expected to reduce Fiji’s exposure to international fuel price volatility, improve energy security, support Fiji’s position in climate commitments and improve long-term tariffs stability of consumers.”
However, Mr Kumar said several regulatory concerns remained.
He noted that increased spending on hired diesel generation required an assessment of whether consumers should bear the full cost of emergency power measures.
“It also necessitates the assessment of whether such expenditure was prudent and efficient and highlights the need for long-term generation planning.”
He also highlighted EFL’s growing debt burden as infrastructure investment expands.
“In order to achieve renewable energy activities objectives, there is a potential requirement for future tariff adjustments.”
Mr Kumar stressed that any future cost recovery proposals must be supported by “rigorous economic and comprehensive assessment” to ensure a balance between affordability for consumers and the need for critical infrastructure investment.
