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Electricity Tariff Reduction effective April 1st 2020

Electricity Tariff Reduction effective April 1st 2020

NUKU’ALOFA, TONGA (23rd March 2020) — After consultation with the Electricity Commission, Tonga Power Ltd is pleased to announce a reduction of power tariff to 75.67 seniti per unit effective 1 April 2020. This is a 7.49 seniti per unit or 9.01% reduction from the current tariff of 83.16 seniti per unit. The fuel tariff was reset to 37.00 seniti per unit for this quarter. The table set out below provides details of the new electricity tariff.
The net decrease tariff movement is due to the reduction in diesel prices this month which fell by 10% or 0.1603 seniti from 1.6994 seniti/litre of diesel to 1.5091 seniti/litre of diesel this month. 

Tonga Power’s collaboration with Government continue to offer the “life line tariff” subsidy despite the movements in diesel prices. TPL continued to work together with Government to hold its electricity tariff since July 2017 through utilizing its Dividends that should have been paid to Government as well as reduction on its non-fuel component to hold the electricity tariff to date. This is the Government of Tonga (Shareholder) continuous response to the high cost of imported diesel which allows all residential consumers who uses less than 100 units of electricity each month to maintain an Electricity Tariff of 70 seniti per kWh or a 5.67 seniti tariff reduction for the first 100 units (kWh) consumed each month effective from 1st April 2020. All other non-residential (business) customers using more than 100 units (kWh) of electricity will pay the new electricity tariff of 75.67 seniti per unit (kWh).

The overall Power Generation from Renewable (RE) is only 14% of our total monthly power generation. So the impact of RE on our prices is already included on this calculation.