[File Photo]

The Fijian Competition and Consumer Commission welcomes the Government’s decision to corporatise the Water Authority of Fiji.

The corporatization aims to enhance WAF’s operational efficiency and financial sustainability, ultimately ensuring better services for all Fijians.

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

Currently, Fijians pay 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.

FCCC Chief Executive, Joel Abraham says corporatisation may lead to cost-reflective pricing, where tariffs are set to cover the full cost of providing services.

Abraham says they will ensure that tariffs remain fair, transparent, and justifiable, balancing the needs of the entity with consumer protection.

He adds 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.

Abraham stresses robust stakeholder engagement will also be required in the tariff-setting process post-corporatisation, including consultations with consumers, industry stakeholders, and other affected parties.