From Matangi Tonga Magazine Vol. 17, no. 1, May 2002.

The Shoreline Group signed a new agreement with the Tonga Electric Power Board on January 21 this year, which allowed Shoreline Distribution to lease the electricity distribution network for Tongatapu, Ha‘apai and ‘Eua.

The Tonga Electric Power Board still owns the assets of the power distribution system, but Shoreline, under the agreement, has taken over the management and operation of the distribution network. The electricity generated from the Popua Power Station of the Shoreline Power Limited, is distributed to residences and commercial enterprises.

The lease agreement is for an initial period of ten years but there is an option of renewal for a further ten years.

The lease fee is based on a fixed amount in seniti per kwh of power  distributed, so depending on actual monthly consumption, the lease cost will be derived. The consumption of electricity on Tongatapu ranges from 2,750,000 - 3,000,000 kwH per month.

The Shoreline Distribution Ltd. was established in January 2002.

Shoreline Power Limited will be responsible for generating power for Tongatapu, Vava‘u, Ha‘apai and ‘Eua, whilst the newly formed Shoreline Distribution Ltd will operate and manage the distribution network for Tongatapu, Vava‘u, Ha’apai and ‘Eua.