EFL warns Fiji could face power rationing from June

Energy Fiji Limited (EFL) has warned Fiji could face controlled power rationing and rotational load shedding from next month if urgent financial support is not secured to cover fuel costs linked to the global energy crisis.

In a media statement, EFL said the country’s electricity system was under “serious operational and financial pressures” because of soaring international fuel prices, increasing dependence on thermal generation and worsening dry season conditions affecting hydro power production.

The company said unprecedented volatility in global fuel markets, driven by geopolitical tensions in the Middle East and instability around the Strait of Hormuz, had pushed fuel prices well beyond EFL’s original budget assumptions.

EFL said heavy fuel oil generation was also operating at a loss.

At the same time, water levels at the Monasavu Dam — Fiji’s main hydroelectric source — have dropped below preferred dry season operating levels.

The statement said current dam levels were sitting at approximately 736 metres, below the preferred level of more than 740 metres heading into the dry season.

Hydrology forecasts indicate renewable energy generation could fall to between 30 and 35 per cent during the coming months, forcing thermal generation to increase to as much as 70 per cent of national electricity supply.

EFL confirmed hydro conservation measures had already begun, including reducing generation at the Wailoa hydro station to preserve water levels until the next rainy season.

The company also warned worsening rainfall conditions and continued fuel supply disruptions could push Monasavu to critical operating thresholds later this year.

Under an Operational Response Framework approved by the EFL Board:

• Normal operations will continue if full fuel recovery support for March and April is received by May 22;
• Controlled rotational load shedding will begin from June 1 if only partial support is received; and
• Nationwide power rationing will commence from June 1 if no support is secured.

EFL said essential services including hospitals, water and sewerage systems, airports, ports, emergency services and national security infrastructure would receive priority protection under any contingency measures.

The statement also said EFL had approached the relevant ministry and the Minister for Finance seeking budget support from March through December 2026, while awaiting a determination from the Fijian Competition and Consumer Commission on a proposed fuel surcharge application.

The company acknowledged temporary fuel duty concessions already provided by Government and ongoing discussions with development partners regarding fuel supply support and concessional financing arrangements.

“These measures are not being considered lightly,” the statement said.

“The current global fuel crisis, combined with dry season hydrological pressures, has created extraordinary operating conditions for the national electricity system.

“Our responsibility is to act early, plan responsibly and protect national electricity supply for all Fijians.”