NFP demands immediate withdrawal of electricity tariff hike proposal

The National Federation Party (NFP) says there is no justification to increase electricity tariffs for residential, commercial or industrial consumers and is calling for the immediate withdrawal of the proposal in the national interest.

In a statement, NFP president Parmod Chand urged Energy Fiji Limited (EFL) and the Fijian Competition and Consumer Commission (FCCC) to pull back the proposed tariff hike, saying this was the only logical solution to end the uncertainty and controversy surrounding the issue.

Mr Chand said the proposal, approved by the FCCC following a submission by EFL in May 2025, has drawn widespread public condemnation, particularly over the manner in which it was made public without any prior consultation.

He described the rollout as a “catastrophic disaster”, adding that even the consultations now being carried out by the FCCC have been controversial, with many questioning their genuineness.

The NFP, he said, has already made its position known to the FCCC through a formal submission.

Mr Chand also dismissed EFL’s claim that 99,000 residential consumers would not be affected by the tariff increase, calling the assertion illogical.

He said the massive increases proposed for commercial customers would inevitably raise the prices of goods and services as businesses attempt to recoup higher costs.

He warned that the resulting flow-on effects would hit households hard and could push inflation higher, at a time when inflation was at record low levels in 2025.

According to Mr Chand, the primary objective must be to protect Fijians from unfair price and tariff hikes, safeguard the interests of the business community and encourage investment.

He said withdrawing the proposal would align with the Coalition Government’s efforts since taking office to raise incomes, reduce inflation and boost economic growth.

He noted that over the last three budgets, the Coalition Government has introduced several measures to ease cost of living pressures, including subsidies for domestic customers who consume 100 kilowatt-hours or less per month and have a combined household income of $30,000 or less per year.

However, Mr Chand said the proposed tariff would directly affect businesses and households that consume more than 100kWh per month.

While lower-usage households may not be directly impacted, he warned they would still feel the effects through higher prices as businesses pass on increased electricity costs.

Business customers, he added, would face an average increase of about 34 percent across four usage tiers.

Any increase in the cost of living driven by higher electricity tariffs would also undermine the government’s strategies implemented in the last three budgets to ease financial pressures on households, he said.

While acknowledging the need for investment in the energy sector to ensure security and sustainability, Mr Chand stressed that this must be balanced against broader economic and social impacts.

He called for continued dialogue with government and key stakeholders to explore innovative financing options.

He again urged EFL and the FCCC to carefully consider the impact of any tariff increase on households, businesses and the wider economy, reiterating that, in the national interest, the proposal must be withdrawn.