[Photo: FILE]
The Standing Committee on Economic Affairs review has identified several significant issues within Energy Fiji Limited that require focused attention and corrective action.
While presenting the review of EFL’s 2023 and 2024 consolidated annual reports in parliament, Committee Chair Sakiusa Tubuna stated that of particular concern is EFL’s continued dependence on imported diesel.
He says this remains EFL’s highest operating cost and exposes both the company and consumers to fluctuations in global fuel prices.
Tubuna states that despite the national target of achieving 90 percent renewable energy generation by 2035, progress toward reducing fuel dependency does not advance at the pace necessary to achieve this objective.
The Committee also noted increasing debt levels and ongoing financial pressures, which Tubuna says, if not carefully managed, could affect EFL’s long-term financial sustainability.
The review further highlights deficiencies in transparency and reporting.
The Committee found limited disclosure regarding dividends paid to customer shareholders, the treatment of interest earned on customer security deposits, and the outcomes of rural electrification programmes.
Tubuna states that such information is essential for ensuring public confidence, promoting accountability, and enabling Parliament and consumers to assess whether EFL is delivering equitable benefits to all stakeholders.
In addition, the Committee expressed concern over the substantial expenditure incurred through hiring containerised diesel generators.
Tubuna highlights that while increasing electricity demand and climate-related impacts on hydroelectric generation present genuine challenges, these costs underscore the importance of stronger long-term planning, timely investment in renewable energy projects, and more effective management of generation capacity requirements.
To address these shortcomings, the Committee has made a series of recommendations aimed at improving EFL’s performance and accountability.
These include the development of a clear and measurable Renewable Energy Transition Plan, strengthened debt management strategies, enhanced reporting on capital expenditure delivery, and greater transparency in shareholder and consumer-related financial matters.
The Committee believes that implementing these recommendations will support better planning, improve transparency, strengthen financial stability, and ensure that investments in the energy sector deliver tangible outcomes for consumers in the wider community.
