Tariff increase proposal | Energy Fiji Ltd requests for 32 per cent rise
19 September, 2023, 12:00 pm
Energy Fiji Ltd (EFL) is asking for a tariff increase of around 32 per cent over the next four years.
Since the last review undertaken in 2019 by the regulator, Fijian Competition and Consumer Commission (FCCC), there has been no increase in the electricity tariff.
FCCC has now received a submission from EFL, asking for the increase of around 32 per cent in tariff charges, with the company outlining a number of reasons why it needs this increase.
EFL states extra money is needed to successfully implement EFL’s 10-year Power Development Plan so that it has adequate power capacities and reliability of power supply.
“In October 2022, EFL completed the review of its 10-year Power Development Plan up to 2031. The 10-year Power Development Plan covers the master development plan to improve all elements of the power systems in Fiji and to ensure adequate and efficient power supply at reasonable cost,” states EFL.
“The plan looks at the load forecast based on the forecasted result to prepare generation plan and network plan to meet the demand for Viti Levu, Vanua Levu, Taveuni and the Ovalau Power Systems.
“The total investment required in the power sector to meet the demand of electricity till 2031 is around $4.3 billion.
“The total investment required in the transmission and distribution system is estimated to be around $1.4 billion for the four main islands that EFL supplies.
“These investments to reinforce the power network system is expected to be funded solely by EFL on its own, as typically there is no economic return from such investments and the reason why the private sector does not invest in the transmission and distribution power systems as generally they are not economically attractive.
“The investments in the power network systems are essential as they ensure that the energy generated from the new power sources, developed either by EFL or the IPPs, are successfully evacuated to the load centres to meet the growing demand of electricity and assist Government to grow Fiji’s economy.”
Members of the public have until September 30 to make submissions to FCCC on this tariff increase proposal.