With debate continuing over the proposed electricity tariff adjustment, Energy Fiji Limited chief executive officer Fatiaki Gibson says the changes are intended to shield low-usage households while strengthening Fiji’s long-term energy future.
Mr Gibson said more than half of all households would not be affected by the proposed increase, as the first 100 units of electricity consumption would remain unchanged.
“More than half of all households in Fiji use 100 units of electricity or less per month,” Mr Gibson said.
“Under the proposed tariff, the price for the first 0 to 100 units will not change at all,” he said.
Mr Gibson said this meant about 99,000 households, or roughly 52 per cent of domestic customers, would see no increase whatsoever.
“Essential electricity use remains fully protected, and only electricity used above 100 units is subject to any change.
“The structure is designed to safeguard low-usage and vulnerable households first.”
Who will be affected
Under the proposed domestic tariff structure, households using between 101 and 300 units per month — about 40 per cent of customers — would see an increase of just over one cent per unit, while the eight per cent of households consuming more than 300 units would face a slightly higher adjustment.
Mr Gibson said the approach ensured fairness by linking higher contributions to higher usage.
“The tariff structure is designed so that those who use more electricity contribute more, while essential household use remains protected,” he said.
Why the adjustment is needed
Mr Gibson said electricity prices had not changed since 2019, despite rising costs of supplying reliable power nationwide.
“Electricity prices have remained unchanged even though the cost of maintaining and supplying reliable electricity has increased significantly,” he said.
He said key drivers behind the proposed adjustment included investment in renewable energy, growing electricity demand, ageing infrastructure and the need to strengthen the network against cyclones and extreme weather.
“Our renewable energy target is 90 per cent by 2035, which requires major investments in hydro, solar and transmission infrastructure.”
He added that electricity demand was growing at around five per cent annually, noting that actual growth reached nine per cent in 2024.
“Without this adjustment, Fiji would face more frequent power outages, higher fuel costs and greater long-term price pressures.”
Global fuel price volatility- biggest risks to electricity prices
Mr Gibson said global fuel price volatility remained one of the biggest risks to electricity prices, a factor Fiji has little control over.
He said EFL was moving decisively to reduce this risk by transitioning to renewable energy, an effort that would require an estimated $2billion investment in hydropower, solar generation, battery storage, and transmission and power evacuation lines.
He said increasing the share of renewable energy would reduce Fiji’s exposure to global fuel price shocks, help stabilise electricity prices over the long term, support the country’s climate commitments and strengthen national energy security.
He warned that without timely investment, new electricity connections could be delayed, businesses could face uncertainty and overall economic growth could slow.
According to Mr Gibson the tariff decision aimed to balance affordability with long-term sustainability, protect vulnerable households, support economic growth and enable a cleaner, more reliable electricity system.
“By working together, Fiji can ensure a future-proofed electricity supply that meets today’s needs while safeguarding generations to come.”
Consultations and regulation
Addressing concerns over public consultation, Mr Gibson said nationwide consultations had already been carried out by the Fiji Competition and Consumer Commission (FCCC) in 2023.
“These consultations included households, small and medium businesses, as well as large commercial and industrial users,” he said.
He said feedback focused on affordability, fairness, reliability and long-term sustainability, and helped shape the tariff structure now under consideration.
Unlike many everyday prices, Mr Gibson said electricity tariffs were set under a regulated, multi-year methodology.
“Electricity tariffs are not adjusted annually. They are set for a four-year period, meaning decisions are forward-looking and based on long-term reliability, not short-term gains.”
Regional comparison
Mr Gibson said even with the proposed changes, Fiji’s electricity rates remained among the lowest in the Pacific.
“Fiji has the lowest domestic electricity rates in the Pacific, lower than Samoa, Tonga, Solomon Islands, Vanuatu, PNG, Australia and New Zealand,” he said.
He said Fiji also had the second-lowest commercial electricity rates in the region, with only New Zealand being lower.
Public response
EFL’s nationwide awareness sessions have so far received a positive response, Mr Gibson said.
“Once people understand the facts, there is strong understanding and acceptance,” he said.
“Most concerns ease when customers learn that more than half of households are not affected, that increases for others are small, and that these investments will improve reliability and reduce future costs.”
He said EFL remained committed to transparency and engagement with the public.
“This adjustment is about protecting households today while securing reliable and affordable electricity for the future.”
Government raises concerns
Meanwhile, Minister responsible for Energy Ro Filipe Tuisawau said the Government was concerned that businesses might pass increased electricity costs on to consumers.
“The Fiji Commerce and Employers Federation have expressed their views regarding the increases, and that is something we need to take into consideration,” Ro Filipe said.
“Whatever costs absorbed by the businesses, commercial sector or employers will be passed on to consumers and to the public.”
He said consultations with stakeholders were still ongoing, with the Government closely reviewing input from the FCCC and EFL.
“As the minister responsible for energy and as Minister of Finance, we are consulting closely and looking at FCCC’s and EFL’s assistance before considering other options.”
He also said he believed consultations should have taken place before any decision was made.
“My initial concern was already expressed in terms of the consultation process.”
“The Employers Federation and various private customers have raised concerns because it seems the consultation was done in the last round rather than the current one.”
