Praneeta Prakash 
Increasing hydropower capacity will not necessarily result in lower electricity costs for consumers.
Acting Deputy Secretary of Operations Mikaele Belena highlighted this while addressing tariff questions at the International Talanoa on Transition, Mineral Mining, and Development Justice at Fiji National University.
Belena says while hydropower reduces fuel imports, it does not eliminate the financial pressures faced by utility providers like Energy Fiji Limited.
“I will not be able to talk about the rationale behind the increase in tariffs, but with the external shocks that are currently affecting the global economy, including Fiji, this is one of the reasons why the push is coming from utilities to really look at the tariff.”
However, Belena says ongoing external shocks and operational demands continue to put pressure on utilities to review pricing structures.
It’s not only about generating electricity; even if you’re going to increase the hydro power, we still need to look at the tariff because of the operational cost and other factors that are affecting the way that they operate the business.
Belena says Fiji already benefits from relatively low tariffs due to its hydropower resources, especially when compared with other Pacific island countries.
