Electricity customers across Fiji will face higher power bills from next week after the Fijian Competition and Consumer Commission approved an interim fuel surcharge increase for Energy Fiji Limited.
FCCC chief executive officer Senikavika Jiuta said EFL had applied on April 13 for an 11 cents per kilowatt hour fuel surcharge adjustment, citing rising global fuel prices and increasing costs of importing industrial diesel oil and heavy fuel oil used for electricity generation.
Ms Jiuta said Fiji continued to rely heavily on imported fuel for electricity production, leaving the country exposed to global market volatility and geopolitical tensions.
She said EFL warned that without some level of fuel cost recovery, maintaining a reliable and stable electricity supply nationwide would become increasingly difficult.
Following what FCCC described as a “comprehensive and rigorous assessment process”, the commission approved an interim fuel surcharge adjustment of 5.91 cents per kilowatt hour instead of the full 11 cents sought by EFL.
The new surcharge will take effect from May 26 and apply to all customer categories, including domestic, commercial and industrial users.
For domestic customers currently paying about 34 cents per kilowatt hour, electricity rates will rise to around 39 cents per kilowatt hour.
FCCC said a household with a monthly electricity bill of approximately $68 could expect to pay about $11.82 more each month under the new rates.
Commercial customers currently paying around 40 cents per kilowatt hour will see rates increase to about 46 cents per kilowatt hour.
A business with a monthly electricity bill of about $2,049 may face an increase of approximately $295.
Ms Jiuta said FCCC carefully reviewed EFL’s financial submissions, fuel procurement data, operational costs, cash flow, electricity generation requirements and projected impacts before making its decision.
She said the commission also considered the effect any increase would have on households and businesses already dealing with cost-of-living pressures and rising operational expenses.
“It is important to emphasize that this is an interim measure,” Ms Jiuta said.
“This decision reflects the careful balance FCCC has to strike between protecting consumers from excessive costs, while also ensuring Fiji continues to have reliable and sustainable electricity supply, which ensures continued economic growth.”
