Fiji Electricity Rates Soar

Effective September 15th, the Fiji Electricity Authority has announced a 30 percent rate hike due to rising diesel fuel costs. Much of the government-owned monopoly's power is still generated at the Monasavu hydroelectric station in central Viti Levu, but rising demand has forced the utility to turn to diesel to generate about half its electricity.

Combined with rising interest rates, this price increase could place many small businesses in Fiji at risk of insolvency. There's sure to be a jump in the inflation rate as companies pass their increased costs along to consumers. Hotel prices have already gone up considerably this year due to increased taxes and profit taking. Will the Government of Fiji try to retain it's competitive edge by devaluing the Fiji dollar? Only time will tell.

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