The Tongan Government has committed to fund a new ‘electricity tariff lifeline’ starting on January 1, 2015 estimated to cost around $1 million pa’anga a year.

The initiative aimed to alleviate the heavy burden of a high electricity cost on individual households in Tonga, will be funded from the 2014/15 budget, approved by Cabinet and the Prime Minister Lord Tu'ivakano.

The Minister for Finance and National Planning ‘Aisake Eke said today this would benefit the bottom 30 percent of electricity consumers who are disproportionately low income households.

"The lifeline tariff will reduce the cost to users for the first block of electricity used each month, which will help the less well off and make electricity more affordable while managing the cost. It is expected to save more than 30 percent off the electricity bills for the 18 percent lowest volume consumers. Another 55 percent of higher-volume consumers will save small amounts off their bill, and no electricity consumer will end up paying more."

Households consuming 50kWH per month can save over $180 per year.

The Ministry and Tonga Power Ltd. are working together to finalise implementation arrangements.