Tonga Power Limited announced on Thursday 15 March that it would not implement any tariff increases until June this year. The decision was made in consultation with Government to help relieve the energy costs in the wake of Cyclone Gita.

According to Tonga Power, electricity tariffs were due to be increased this year in response to the rising costs of diesel. However, a post-Gita agreement between Government and Tonga Power enable Tonga Power to hold on to Government’s share of dividends in order to pay for fuel costs.

Tonga Power stated in its press release: “The cost of diesel has continued to increase since July 2017. . . however, due to the aftermath of TC Gita, the Combined Utility Board and TPL Management have agreed through a consultation with the Minister for Public Enterprises to hold any tariff increase until June 2018 on the condition that the diesel price will increase no more than 12.5 seniti between now and June 2018…”

“The returned dividend of $2.1 million will be held by TPL or re-invest back by Government to pay for the increase fuel price.”

“If the diesel cost does not increase by more than 12.5 seniti per litre from January – June 2018, the tariff will remain at 81.20 seniti per kWh.”