In 2003 the Commission was able to secure funding to operate independently and appoint its own resources more...
Mr Thomas Raju ,Presiding Chairman
Key Strengths
Good working relationship with stakeholders is also strength of the Commission more...
Experience relevant to EAP
Decisions released by the Commission provide explanatory notes on the reasons and the methodologies adopted more...
Issues and Challenges
The Commission is also considering pricing decisions for all ports more...
Interview with Chairman
Secretariat: What have been the FCC’s key initiatives and achievements under your leadership?
Chairman:
The Commerce Commission initial set up was undertaken with the Ministry of Commerce under their ambit and structure, with officers of the Ministry providing dual roles. However in 2003 the Commission was able to secure funding to operate independently and appoint its own resources as well as its current office.
The Commission has managed to deliberate and make profound decisions that have shaped the economy and assisted the government in investment, business development, and provided better consumer choices. These included reduction in telecommunication prices and introduction of life line tariffs for low electricity users. The processes adopted by the Commission in making decisions adhere to transparency and good governance, which is a critical tool of the government.
Secretariat: What do you consider are the FCC’s key strengths as a regulatory organisation?
Chairman:
The Commission’s processes in making its determination are thorough and comply with good governance. As a statutory requirement, the processes mandate the Commission and the parties to comply. Where there are processes requiring further consideration, the Commission allows parties to make submissions prior to the implementation of these processes.
Good working relationship with stakeholders is also strength of the Commission. The Commission always ensure that stakeholders understand it’s roles and functions and demarcates the importance of being a regulator.
The independent structure of the Commission allows the Commission to objectively make decisions from a regulator perspective to all sectors of the economy.
Lastly, the credible decisions released by the Commission which was made possible thorough research and proper advice. Given that the Commission is still in its embryonic stages, it is important for the Commission to be seen to perform its functions adequately to gain respect from the industry and community. The decisions also are directives for the government as well as precedent administrative decisions for the parties involved.
Secretariat: In which areas, in your opinion, can the regulatory community in East Asia & Pacific region benefit from the experiences, Orders, and Regulations of the FCC?
Chairman:
Firstly the decisions released by the Commission provide explanatory notes on the reasons and the methodologies adopted. These decisions can assist the region to define or identify means of controlling prices of utility based services, especially where these utilities are monopoly owned or semi-government. The decisions also takes into account lower income earners and this can serve as directives to the region on universal service obligations and its impacts as well as the means of implementation.
The legislative structure as an independent economic regulator for all utilities is one of the ways in which Pacific nations can establish regulators to ensure resources focus on one regulator, given the budgetary constraints and the limited resources.
Secretariat: What issues and challenges does the FCC expect to face over the next 2-3 years? How can you benefit from the experiences of the regulatory community in East Asia & Pacific region? ?
Chairman:
The Commission must now strengthen its capacity given it’s expanding role in regulating telecommunication interconnections. The Commission is also considering pricing decisions for all ports (air and sea) and must obtain further assistance from the East Asia region and Pacific through the Forum and Memorandum of Understanding with ACCC to perform its functions.
Given that competition law is dynamic, dictated by the economy as well as the markets, the Commission should also be prepared to develop constantly as well as redirect its focus on the issues arising in Fiji.
The Commerce Commission is a statutory authority established under the Commerce Act 1998 (referred to as the ‘Act’) with the objective of ensuring competitive markets and prohibiting restrictive trade practices by imposing the local competition law i.e. Fair Trading Decree 1992 as amended in 1998. (referred to as the ‘Decree’).
The Commissions functions as stipulated under the Act is are follows:
(i) to negotiate access agreements where parties intend to obtain access from monopoly owned infrastructure;
(ii) arbitrate access disputes;
(iii) administer the Decree which prohibits restrictive trade practices like contracts and understandings that lessen competition, abuse of market power, mergers that place the merged entity in a dominant position and consumer protection provisions.
(iv) Deliberate over applications for authorization from offenders of (Part III) restrictive trade practices of the Decree.
(v) Control prices for goods or services declared by the Minister.
The Commission has now forwarded to cabinet an amendment to the Act which will extend its functions to administer the access agreement provisions and arbitration of disputes to the telecommunication industry and is awaiting cabinets decision.
Key Orders and Regulations
The Commission has released a number of Regulations and Orders since it’s inception in 1999 specifically in price control pursuant to section 32 of the Commerce Act 1998 (hereinafter referred to as the ‘Act’) as well as Access Dispute Arbitrations.
According to the Act, the Minister of Commerce, Business Development, Investment and Communications may only declare a service or product as price control if the Commission recommends after having being satisfied that:
(i) the good or service is supplied in a limited or lessened competitive market;
(ii) the price control is for the benefit of the user, supplier as well as the public.
The price control can also identify the grade, quantity or class of service to be price controlled including the specific geographic locations.
Commerce (Control of prices for the supply of Telecommunication services) (Control of Prices) Order 2004 as amended in 2007
This Order, declared by the Minister of Commerce, empowered the Commission to authorize prices for telecommunication services which includes fixed line, mobile and international calls as well as internet services under the Commerce Commission telecommunications pricing Determination 2005 which was reviewed this year and implemented on the 1st of October 2007.
The decisions for telecommunications can be downloaded from the website www.commcomm.gov.fj.
Commerce (Control of prices for the supply of Electricity Services) Order 2002 as amended in 2005
Commission was authorized price increases for electricity over a 3 year phased period. However the price increases were not imposed after the current interim government instructed FEA not to burden consumers with additional prices. This decision is important as it implements a phased pricing approach taking into consideration exemptions for lower users.
The Commission also determined a trigger related point system for the implementation of fuel surcharge, imposing exemptions and 50% rebates to lower users.
The decision for electricity prices as well as fuel surcharge can be obtained from the website www.commcomm.gov.fj.
Commerce (Control of prices for the supply of reinforcment steel rods) Order 2006 and Commerce (Control of prices for the supply of cement) Order 2006
The Commission has released pricing determinations for cement products and is finalizing prices for reinforcement steel rods.
The pricing decision for cement can be obtained from the website www.commcomm.gov.fj.
Commerce (Control of prices for postal services) Order 2006 amended in 2006
The Ministerial Order empowered the Commission to determine prices for all postal services including money orders and postal boxes. This pricing decision is now currently being reviewed and a new pricing decision will be imposed.
The postal services pricing decision can be obtained from the website www.commcomm.gov.fj.
Commerce (Control of prices for aeronautical services) Order 2005
The Ministerial Order empowers the Commission to conduct a pricing and competition study on aeronautical services and determine the appropriate prices.
