FCEF calls for EFL power tariff decision to be set aside

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The Fiji Commerce and Employers Federation (FCEF) has warned that a proposed increase in electricity tariffs by Energy Fiji Limited (EFL) will directly impact more than 150,000 Fijians employed across all major economic sectors, with serious flow-on effects for businesses that collectively generate between $8 and $10 billion in annual output.

In a formal submission to the Fiji Competition and Consumer Commission (FCCC), FCEF has taken an unequivocal position, calling on the Commission to either set aside the electricity tariff determination entirely and restart the regulatory process, or to reject EFL’s application in full.

FCEF has strongly opposed any form of conditional approval or modified implementation of the determination, arguing that the process used to approve the tariff increase was fundamentally flawed.

The Commission announced the tariff determination on 19 December 2025, proposing a 34.7 per cent increase in commercial electricity tariffs. Following significant public and stakeholder backlash, the FCCC suspended implementation on 29–30 December and opened a 21-day consultation period.

However, FCEF argues that this retrospective consultation cannot remedy what it describes as serious defects in the decision-making process.

The Federation said the consultation was conducted during the Christmas and New Year holiday period, without prior disclosure of EFL’s full application, and after the Commission had already announced its approval.

According to FCEF, announcing a determination before any stakeholder input raises concerns of predetermination, apparent bias, and evidentiary gaps that cannot be cured through post-decision consultation.

“Genuine consultation for a determination of this magnitude requires meaningful opportunity for influence from the outset, not a process designed to retrospectively validate a decision already reached,” FCEF said in its submission.

FCEF represents Fiji’s private sector, with member businesses spanning all economic sectors and employing over 150,000 Fijians. These businesses form the productive backbone of the national economy and rely heavily on electricity to operate.

The Federation highlighted that every member business would be directly affected by the proposed tariff increase, which represents a projected FJD 2.21 billion revenue requirement over four years.

It warned that higher electricity costs would place additional pressure on businesses already grappling with rising operating costs, potentially affecting employment, investment decisions, and consumer prices.

Despite its strong stance, FCEF made it clear that it does not oppose reasonable and necessary investment in Fiji’s electricity infrastructure.

The Federation acknowledged that ongoing investment is required to maintain system reliability, support the transition to cleaner and more sustainable energy sources, and meet growing demand.

Its objection, FCEF stressed, is centred on the process and the lack of evidence demonstrating that the proposed tariff outcome represents the best and fairest result for electricity consumers, as required under the statutory framework established by Parliament.

FCEF has urged the FCCC to uphold the integrity of the regulatory process, warning that decisions of this scale must be transparent, impartial, and grounded in proper consultation to maintain public confidence and protect the broader economy.