Tourism industry expresses concerns over EFL’S tariff increase reasoning

Friday, September 22, 2023

The Fiji Hotel and Tourism Association (FHTA) is deeply dismayed by Energy Fiji Limited’s (EFL) recent justification for a tariff increase.

FHTA firmly believes that EFL’s approach to renewable energy sources, in the context of global climate change efforts, should be seen as an opportunity for innovation rather than as a threat to their commercial gains, given the $58million profit it recently announced for 2022 despite Fijian families and businesses experiencing continuing power outages, disruptions and ongoing difficulties to access power for rural households and commercial investments.

The recent pursuit of a tariff review with the Fijian Competition and Consumer Commission (FCCC) has raised deep concerns within Fiji’s business and industrial sectors, including tourism operators, many of whom have increasingly turned to solar power to enable more reliable power sources, align their strategic focus on sustainability and reduce energy costs.

While EFL has pointed to genuine challenges such as rising fuel costs and the necessity to develop hydro projects, FHTA underscores the paramount importance of sustainable practices and the need to either maintain or lower business costs, particularly in the aftermath of the COVID-19 pandemic and the expected devastating impacts of climate change being seen more often around the world.

The tourism industry has progressively embraced sustainability as a cornerstone of its business strategies.

Renewable energy sources, including solar power, have proven to be reliable and economically viable options for reducing electricity expenses while reducing their carbon footprints.

Advanced solar power technologies can now provide more efficient energy solutions for households, businesses, industries, and public and commercial buildings.

Furthermore, the utilization of distributed generation units, such as solar panels combined with small-scale energy storage systems, can enhance self-consumption and alleviate grid congestion.

This approach holds the potential to ensure the recurrent power blackouts that have historically plagued Fijians are a thing of the past. Yet, the sole power provider for the nation appears unable or unwilling to embrace the need to reduce our dependence on fossil fuels.

FHTA CEO Fantasha Lockington noted that this was completely at odds with the Fijian Government’s Cabinet-approved National Energy Policy 2023–2030 which cites a commitment to providing access to affordable, reliable, secure, and sustainable energy services to all Fijians through a safe and efficient transition of Fiji’s energy systems, transport, and infrastructure from its existing reliance on imported fossil fuels to low carbon and renewable-energy based technologies.

“We are absolutely appalled by EFL’s reasoning for a tariff increase that includes their perception that renewable energy alternatives might drive up costs to a reduced customer base that may only be low-income earners; instead of working with their customers to embrace where the entire world is going except for them.

This is simply ignoring what the future and climate change demands we must do now. The reasoning behind the pursuit of a tariff increase is bizarre and deeply flawed”.

Collaboration and a determined vision to leave no Fijian behind in a national effort to drive the transition towards cleaner energy sources, reducing carbon emissions, and preserving Fiji’s natural resources for the benefit of future generations is critical.

The Association will be making a formal submission on the issue.

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