The Fiji Commerce and Employers Federation says the proposed electricity tariff increase must be viewed within the broader economic environment, warning that businesses are already facing mounting cost pressures.

Chief Executive Officer Edward Bernard said many stakeholders are looking at the tariff proposal in isolation, without considering other recent increases affecting the private sector.

According to Bernard, rising minimum wages, corporate tax adjustments and pending legislation such as the Employment Relations Amendment Bill have collectively increased the cost of doing business in Fiji.

He argues that adding a significant rise in electricity tariffs on top of these pressures could be devastating for businesses, particularly at a time when many are still managing tight operating margins.

Bernard says the impact would not be limited to one industry, noting that electricity is essential across the economy, from factories and hotels to small retailers and service providers.

He maintains that a tariff increase would have sector-wide consequences, potentially placing additional strain on both businesses and households.

The FCEF CEO also highlighted the lack of alternatives available to businesses, describing them as “captive customers” due to the limited number of energy providers in the country.

He says this leaves companies with little room to absorb higher electricity costs.

At the same time, Bernard acknowledged the need for a transition toward renewable energy, but questioned whether increasing tariffs to raise capital for infrastructure expansion is the right approach.

He says careful consideration is needed before a final decision is made, stressing that the issue should be assessed rationally with attention to its wider economic implications.

The comments come as national discussions continue over the proposed electricity tariff adjustment, with regulators balancing infrastructure investment needs against concerns about affordability and the growing cost of living.