The Fijian Competition and Consumer Commission have published the methodology used to calculate the changes in electricity tariff rates.
These calculations will now be done every 4 years.
The Fijian Competition and Consumer Commission had announced that the electricity tariff will increase by 2.74 percent from the 1st of next month.
The Fijian Competition and Consumer Commission say this is 0.91 cents for domestic, institutions, places of worship and public infrastructure, 1.12 cents for commercial customers, 0.81 cents for industrial customers.
They say having considered EFL’s capital expenditure program, including its financials, operating expenditure and its future plans for generation and network expansion to meet the growth in demand for electricity services, FCCC is of the view that the electricity industry will continue to grow as demand growth increases.
They say they have independently reviewed the data and submissions provided by EFL and have incorporated these into the modeling of the forward‑looking price path for EFL’s electricity services.
It says under the regulatory principles, FCCC has used the Building Block Approach in developing the revenue requirements for EFL adding EFL’s operating expenditure, capital expenditure plans were made subject to the assessment of prudence and efficiency and adjustments to the required revenue.
The Commission says furthermore, the methodology balances tariff objectives in ensuring efficiency, environmental sustainability, and consumer interests.
It adds the review of the EFL electricity tariff rates would be subject to the following conditions:
A four‑year comprehensive regulatory cycle will be applicable;
Annual review of cost‑indices to account for uncontrollable costs; and Ad‑hoc review for extraordinary events through tariff adjustments to address natural disasters such as cyclones and droughts.
You can find a full copy of the methodology on the following link: http://bit.ly/efltariff19