Power tariff rise to hit household budgets: Consumer Council

Consumers across Fiji are likely to face further pressure on household budgets as higher electricity tariffs flow through to the prices of everyday goods and services.

Electricity is a major operating cost for businesses such as food retailers, transport operators, hotels and small enterprises.

When tariffs rise, these costs are often passed on to consumers, pushing up prices for food, transport, accommodation and other essential services.

The Fijian Competition and Consumer Commission (FCCC) had approved a 24.2 per cent increase in electricity tariffs, effective January 1, 2026.

The Consumer Council of Fiji has warned that the tariff increase comes at a time when many families are already struggling with the rising cost of living.

The council said the lack of early consultation left both consumers and businesses unprepared.

Council chief executive officer Seema Shandil said decisions affecting essential services should involve timely and meaningful engagement.

“Without this, households cannot plan their spending and businesses are unable to adjust gradually,” she said.

Ms Shandil warned that higher electricity costs faced by businesses were likely to be passed directly on to consumers, further straining household budgets.

The council has called for close monitoring of prices in the coming months to protect consumers, particularly low-income families.

It also raised concerns about accountability, noting that Energy Fiji Limited (EFL) has said the increase is needed for infrastructure upgrades and capital investment.

“If consumers are paying more, they have a right to expect that these funds are being directed toward tangible improvements.” she said.  

The Council is urging greater transparency, including clear reporting on how the additional revenue is spent, to maintain public trust and ensure consumers see real benefits from higher power tariffs.

Meanwhile, EFL chief executive officer Fatiaki Gibson said that the revised electricity tariffs are structured to protect vulnerable categories of customers.

Mr Gibson explained that the tariff revision process follows a legislated methodology under the Electricity Act 2017, ensuring transparency and consumer protection.

The FCCC oversees the process to ensure compliance with international standards.