PRESS RELEASE: FCEF Calls on FCCC to Set Aside 19 December Tariff Determination and Restart Review Process

13 January 2026

The Fiji Commerce & Employers Federation (FCEF) has formally called on the Fiji Competition and Consumer Commission (FCCC) to set aside its 19 December 2025 electricity tariff determination and restart the regulatory review process, following the Federation’s submission presented today during an exclusive consultation with FCEF members and partners, Energy Fiji Limited (EFL) and FCCC at the Civic Centre in Suva.

FCEF’s written submission formally objects to the determination approving EFL’s electricity tariff application and concludes that the decision cannot stand on procedural, statutory and economic grounds.

The evidence reveals a fundamental contradiction: while EFL claims an urgent funding crisis requiring major tariff increases, it paid $40.7 million in dividends in 2023 despite recording a loss of $24.8 million, holds more than $52 million in customer security deposits, and maintains low debt levels that provide approximately $257 million in untapped borrowing capacity.

“FCEF submits that the 19 December tariff determination is fundamentally flawed — procedurally, economically and legally. It was made without genuine consultation and relies on incomplete, undisclosed information that prevents businesses and consumers from properly assessing the basis of the proposed 34.7% increase,” said FCEF President, Eldon Eastgate in his opening remarks.

“The determination shifts the burden of under-investment in renewables and unutilised shareholder capacity onto consumers and businesses already facing unprecedented cost pressures, without demonstrating that the proposed investments are efficient, least-cost or aligned with Fiji’s long-term economic realities.”

Determination must be set aside or application declined

FCEF’s position is unequivocal. The Federation has called on FCCC to either:

• set aside the 19 December determination and restart the assessment process in full, or
• decline EFL’s tariff application entirely.

FCEF has stated that conditional approvals or minor process adjustments are not sufficient to address the fundamental deficiencies identified.

Seven categories of fatal deficiencies

FCEF’s submission identifies seven fatal deficiencies, each of which independently warrants setting aside the determination:

1. Procedural invalidity and lack of transparency
The determination was announced before stakeholder consultation took place, with a 21-day consultation opened only after public backlash. Stakeholders have not been given access to EFL’s full application or supporting data, preventing informed participation.

2. Failure to test shareholder financing obligations
The determination accepts EFL’s funding claims without requiring shareholder capital, borrowing capacity or retained earnings to be exhausted first, despite EFL’s low gearing of 8–26 % compared with industry norms of 60–100 %, and continued dividend payments during a loss-making year.

3. Unreconciled privatisation proceeds and demand assumptions
The use of the FJD 1.2 billion received from partial privatisation in 2018 has not been reconciled against current capital funding needs. In addition, EFL’s demand forecasts — including claims of 9 % growth in 2024 and projected 5 % annual growth — have not been independently verified against demographic and economic trends.

4. Failure to meet statutory pricing requirements
The Electricity Act requires that tariffs reflect only efficient and prudent costs. FCEF said the determination does not demonstrate that proposed investments are necessary, efficient or that lower-cost alternatives have been fully tested.

5. Unsustainable economic burden on businesses and consumers
Businesses are already absorbing cumulative increases including 87 % minimum wage rises, 25 % corporate tax increases, 39 % VAT increases and double-digit inflation since 2021. A further 34.7 % increase in commercial electricity tariffs would be transmitted through supply chains, raising prices for all consumers and threatening business viability and jobs.

6. Strategic failure to deploy lower-cost renewable energy
Despite global solar costs falling by 85–90 % over the past decade, EFL’s solar and wind generation declined from 0.30 % in 2019 to just 0.07 % in 2024, while diesel remained the dominant and most expensive source of generation, resulting in a $211 million fuel bill in 2024. FCEF said earlier investment in renewables and greater use of Independent Power Producers could have reduced long-term costs and improved system resilience.

7. Lack of least-cost investment testing and independent verification
The determination was made without independent technical assessment of demand forecasts, cost estimates or lifecycle comparisons, and without testing alternative financing and procurement models that could reduce the burden on consumers.

Not Opposed to Investment — Opposed to Flawed Process

FCEF stressed that it supports necessary investment in Fiji’s electricity infrastructure to improve reliability and accelerate the transition to cleaner energy.

“Our objection is not to investment,” says FCEF CEO, Edward Bernard. “It is to a process that has not demonstrated that the proposed approach is the most efficient, least-cost and fair outcome for consumers and the economy.”

Formal Requests to FCCC

FCEF has formally requested that the FCCC:

• Set aside the 19 December 2025 determination in its entirety
• Decline approval of the tariff application unless a proper regulatory process is conducted
• Publish EFL’s full May 2025 application and supporting documentation
• Commission independent technical and financial assessments
• Conduct meaningful public consultation over a minimum 60-day period, including hearings
• Order an independent audit of the 2018 privatisation proceeds
• Mandate a dividend moratorium until prudent gearing and renewable targets are met
• Offset existing financial resources, including customer deposits and banking headroom, against any revenue requirement

FCEF said the outcome of this matter will shape electricity regulation in Fiji for years to come and urged the Commission to restore confidence in the regulatory process through transparency, independence and adherence to statutory standards.

FCEF represents employers across all major industries and business sizes, accounting for more than 150,000 jobs and an estimated FJD 8–10 billion in annual economic output.

The full submission can be found on FCEF’ website

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Related Media Stories

• FBC – FCEF urges for an overturn EFL’s 34.7% electricity tariff increase
• The Fiji Times – FCEF calls for EFL power tariff decision to be set aside
• Fiji Sun – FCCC told to scrap electricity tariff decision, restart review
• The Fiji Times – FCEF: Restart EFL tariff proposal process

For enquiries, please contact:

Ms Gaylene Kamali
Advocacy & Corporate Communications, Fiji Commerce & Employers Federation
T: +679 331 3188| M: +679 998 3098 | E: macc@fcef.com.fj |

About Fiji Commerce Employers Federation:

The Fiji Commerce & Employers Federation (FCEF) is the most representative voice of the private sector in Fiji, bringing together employers across all industries and business sizes. We advocate for balanced, evidence-based policies, provide platforms for dialogue between employers and decision-makers, and support businesses through training, networks, and practical resources. Through trusted partnerships and tripartite engagement, FCEF works to strengthen a sustainable, inclusive, and competitive business environment that contributes to national economic development.

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