[File Photo]

The Fiji Commerce and Employers Federation is strongly recommending the Fijian Commerce and Consumer Competition suspends its decision on the proposed electricity tariff increase and undertake nationwide consultations with the private sector.

Chief Executive, Edward Bernard says they believe this essential step will provide the Commission with critical insights that support a more balanced and informed decision.

He says FCEF stands ready to mobilize the private sector to support the consultations.

Bernard says they respect the mandate of the FCCC as an independent regulator and the regulations that guide its work.

However, he says they wish to convey the private sector’s deep concern regarding the absence of consultations with businesses and business organizations who are key stakeholders and major contributors to Fiji’s economy.

He says they note that the Commission’s decision was based on its internal assessment of a revised proposal submitted by Energy Fiji Limited, originally lodged in 2023 seeking a 37 percent increase.

The FCEF CEO says since that time, the cost of doing business in Fiji has risen sharply.

He says the minimum wage has increased by more than 50 percent, corporate tax has risen by 5 percent, and the cost of sourcing and retaining workers has escalated significantly due to the ongoing labour and skills crisis.

Bernard further adds that low productivity levels continue to erode the bottom line of many businesses.

He says these pressures are being felt across all sectors, sizes, ownership types, and geographic locations and that utility costs, including electricity already represent a substantial portion of business expenditure.

The FCEF CEO adds that the proposed 24.2 percent increase will further elevate these costs, with likely consequences for business expansion, investment decisions, and overall competitiveness.

He says this trajectory risks undermining national targets, including increasing MSME contribution to 22 percent and lifting investment to 20 percent of GDP by 2030.

Bernard says that while the Federation acknowledges the importance of investment in EFL’s Renewable Energy CAPEX Plan and its new five-year capital expenditure program, it is imperative that the public, government, and the private sector who are the end users of EFL’s services are consulted.

Stream the best of Fiji on VITI+. Anytime. Anywhere.