Keeping the lights on is weighing heavily on cash flow for Energy Fiji Ltd (EFL), who has applied to the Fijian Competition and Consumer Commission (FCCC) for an emergency fuel surcharge adjustment, following a substantial increase in international heavy fuel oil (HFO) and industrial diesel oil (IDO) prices.
Its application comes just days after Prime Minister Sitiveni Rabuka’s announcement that Government will provide fuel rebates to EFL for the next four months as part of Phase One of Government’s response to the current global fuel crisis.
“This includes 20 cents per litre on diesel and 12 cents per litre on heavy fuel oil,” Mr Rabuka said in his address to the nation last Thursday, in which he also relayed Government’s commitment to “keep the lights on” for Fiji.
“This support will stabilise electricity generation and ensure that homes, businesses and essential services continue to have reliable power during this period.”
In its statement yesterday announcing EFL’s emergency application, the FCCC said in light of the urgent nature of the current fuel cost escalation and the need to safeguard the continuity of electricity supply, it has fast tracked its assessment process “supported by targeted consultations with relevant stakeholders and technical agencies.”
“This approach is intended to ensure that the Commission is able to respond promptly to evolving market conditions while taking into account the broader public interest, the operational requirements of EFL, and the potential impact on consumers,” the price regulator stated.
“In carrying out its regulatory assessment, FCCC’s priority is to strike an appropriate balance between protecting consumers from sudden price shocks while ensuring the sustainability of electricity supply.
“As per the Commission’s mandate to promote fair pricing and safeguard consumer interests, all these factors will be carefully considered in this assessment.”
Questions sent to FCCC on whether the fuel rebate, if approved, will be passed on to EFL customers, given the commitment given by Government to cushion any price shock from EFL over the next three months, remained unanswered by press time yesterday.
