The Consumer Council of Fiji is concerned regarding the proposed introduction of new
electricity charges by Energy Fiji Limited.
In a statement, chief executive Seema Shandil said with rising costs of living due to inflation and recent increases in Value Added Tax (VAT), any increases in electricity tariffs would mean consumers would have to fork out more, placing immense pressure on their household finances.
She said from the Council’s interpretation of the Tariff Submission, EFL has proposed a 32% tariff increase over the next four years and the introduction of a new tariff in the form of a ‘fixed charge’ which will amount to a flat rate of 65 cents per day for domestic customers.
“This will be additional to the billing for normal electricity usage. This means, in a 30-day billing period, a domestic customer would have to pay an additional $19.50 to their standard bill.”
“This proposed additional fixed daily charge is $3.00 for commercial customers and $450.00 to $4,500.00 for industrial customers (depending on tariff bands), a charge that businesses will no doubt pass on to their customers, therefore driving up prices even higher.”
EFL’s claim that this tariff increase is essential for implementing their 10-year Power Development Plan is met with skepticism by the Council.
Shandil said if EFL requires additional infrastructure investment, it should perhaps explore development options, similar to other businesses.
She said the Council believes that EFL should explore alternative funding sources, such as loans or Government equity capital injection, to fund its infrastructure projects.
Shandil said EFL’s rational for this tariff hike includes an assertion about the growing adoption of rooftop solar systems and their reliance on EFL’s grid as a backup.
She said this is regardless of their actual electricity consumption, this fee is recognised as the minimum domestic charge (currently 7.60 for residential customers) and the minimum commercial charge (currently $17.20 for commercial customers).
The Consumer Council of Fiji is engaging the public to come forward in solidarity and give their submissions to FCCC and make their views count.
