Water tariffs will soon be reviewed with the Fijian Competition and Consumer Commission (FCCC) set to hire external consultants with expertise in urban planning, utility regulation, financial modeling, and tariff setting.

The FCCC said the consultants “will provide critical insights and recommendations to develop a robust and equitable tariff structure and help WAF achieve its operational goals.”

The FCCC also said it welcomed the Government’s decision to corporatise the Water Authority of Fiji, a move which “aims to enhance WAF’s operational efficiency and financial sustainability, ultimately ensuring better water services for all Fijians.”

Deputy Prime Minister Manoa Kamikamica said it marked “a pivotal step forward towards ensuring that all Fijians have access to reliable and high-quality water services.

“This transition is designed to foster greater efficiency and financial stability within WAF, which is essential for the continued growth and development of our nation,” he said.

“We are committed to working closely with FCCC to develop a fair and transparent water tariff structure that balances the need for sustainable operations with the importance of affordability for our consumers.”

FCCC said as part of the process, it will thoroughly examine the water tariff structure to ensure it reflects the true cost of service provision while remaining fair and affordable for consumers.

CEO Joel Abraham said currently, Fijians paid one of the lowest water tariffs in the Pacific at 15 cents per 1,000 litres.

However, this low rate has resulted in WAF receiving only a fraction of the income necessary to operate and invest sustainably.

“Corporatisation may lead to cost-reflective pricing, where tariffs are set to cover the full cost of providing water services, including operational costs, maintenance, and capital investments. This shift ensures financial viability but may result in higher tariffs for consumers,” he said.

“FCCC’s role in overseeing tariff setting becomes crucial under corporatisation. We will ensure that tariffs remain fair, transparent, and justifiable, balancing the needs of the entity with consumer protection.”

Mr Abraham said increased operational efficiency driven by the change could also lead to cost savings, which, if passed on to consumers, could mitigate tariff increases.

He said the FCCC will monitor the efficiency gains and their impact on tariffs.

“The structure of tariffs might change, introducing different pricing tiers or mechanisms such as fixed charges, volumetric charges, or seasonal pricing, reflecting the true cost of water usage and encouraging conservation.”