Corporatisation of WAF

May result in higher tariffs for consumers, says Abraham

THE corporatisation of Water Authority of Fiji (WAF) may result in higher tariffs for consumers, says Fijian Competition and Consumer Commission (FCCC) CEO Joel Abraham.

While welcoming government’s decision to corporatise WAF, Mr Abraham advised Fijians that this could lead to an increase in water tariff prices.

In a statement, FCCC explained that it would thoroughly examine the water tariff structure to ensure it reƞected the true cost of service provision while remaining fair and affordable for consumers.

“Corporatisation may lead to cost-reƞective pricing, where tariffs are set to cover the full cost of providing water services, including operational costs, maintenance, and capital investments,” said Mr Abraham.

“This shift ensures Ɲnancial viability but may result in higher tariffs for consumers.”

He said FCCC’s role in overseeing tariff setting would be crucial under corporatisation.

“We will ensure that tariffs remain fair, transparent, and justiƝable, balancing the needs of the entity with consumer protection.

“Increased operational efficiency driven by this change could also lead to cost savings, which, if passed on to consumers, could mitigate tariff increases.

“FCCC will monitor these efficiency gains and their impact on tariffs.”

He said the structure of tariffs might change, introducing different pricing tiers or mechanisms such as Ɲxed charges, volumetric charges, or seasonal pricing, reƞecting the true cost of water usage and encouraging conservation.

According to FCCC, a robust stakeholder engagement would be required in the tariff-setting process post-corporatisation, including consultations with consumers, industry stakeholders, and other affected parties to ensure transparency and acceptance of tariff changes.

“A corporatised WAF may prioritise investments in infrastructure to improve service delivery. While the cost of these investments may lead to higher tariffs in the short term, the long-term goal is to enhance service quality.

“Performance-based regulation may also be adopted, linking tariffs to performance indicators such as service quality, efficiency, and customer satisfaction.”