Need more clarity to justify EFL tariff increase

Labasa Town Council special administrator chairperson Paul Jaduram says, he is not opposed to the Energy Fiji Limited’s (EFL) proposed electricity tariff increase.

However, he believes that reasons for the increase must be clearly explained to members of the public.

Electricity and water are basic necessities and any increase in tariffs directly affects people’s daily lives.

“We are not saying there should be no increase, but when you increase essential services like electricity and water, you must properly explain to the people why it is being done,” Mr Jaduram said.

In his view, this had not been adequately communicated to consumers.

Ripple effect

He acknowledged that businesses had operational overheads, but warned that a significant increase in electricity tariffs would have a ripple effect across the economy.

“If the proposed tariff increase goes ahead, we can expect food prices to go up, as manufacturing factories and other industries will need to recover their expenses,” he said.

While a small percentage increase can be accepted, the proposed increase for commercial and industrial users is too high.

“In my opinion, an increase of almost 50 per cent for commercial industries is too much. Everybody will be affected in one way or another,” he said.

Mr Jaduram said authorities must ensure any tariff increase was well justified and clearly communicated to avoid placing further pressure on consumers already confronted with a hike in living costs.