Electricity Tariff decrease starts from 1 January 2015

Public Notice from Tonga Power Limited

Electricity Tariff Decrease effective From 1^st January 2015.

The Electricity Commission has approved for Tonga Power Ltd to put in place a new price for the electricity tariff to be effective from 1st January 2015.

A further reduction in the price of crude oil in the Singapore market has resulted in a decrease in the landed cost of diesel in Tonga by 7 seniti per litre, as announced by Government for November 2014 – December 2014 from $1.6611 to $1.5901 per litre. The electricity tariff was last reviewed in November 2014, and since that period the price of diesel has continued to fall.

The decrease in diesel prices combined with the impacts of the solar farms in Tongatapu and Vava’u and the Nakolo wind turbine, provides a reduction for electricity tariff to 1.50 seniti per kWh. However, other costs are prone to inflation, as a result the non-fuel component is increased by 0.60 seniti per kWh and approved by the Electricity Commission. After allowing for these two changes, the net effect is to reduce the standard electricity tariff to 87.79 seniti per kWh, a decrease from the current 88.69seniti per kWh. The reduction will apply to all electricity consumed on all four island networks from 1st January 2015.

The tariff adjustment is determined by a process set down in the Concession Agreement between Tonga Power Limited and Government, managed by the Electricity Commission. The Competent Authority is the Tongan Government Agency which sets the landed price of diesel which Tonga Power Ltd use for their power generation. The new rates, effective from 1 January 2015, are shown below along with the changes.

Thank you,
Tonga Power Ltd.
19 December 2014