The Tonga Electric Power Board today, announced a 5.21 seniti increase in the price of electricity that by the end of the year could translate into a 35.6% increase for domestic consumers.

The board has increased prices throughout Tonga by 5.21 seniti per kWh, to be effective from Shoreline's September consumer billing cycle, and rejected a 3 seniti per kWh recommendation from the Minister of Finance who is the chairman of TEPB.

The increase labelled a "temporary fuel cost adjustment" represents an immediate 9.22% to 10.11% increase for commercial and domestic consumers this month. But this increase will also translate into a 35.6% price hike for domestic consumers in Tongatapu and Vava'u when added to the loss of their 11 seniti government subsidy, which is not expected to last the year.

Under the new rate the 5.21 seniti increase brings the price of electricity per kWh for Tongatapu to 61.71 seniti, Vava'u 63.71 seniti, 'Eua 56.71 seniti and Ha'apai 56.71 seniti.

The TEPB noted that so long as the government's "social contribution" scheme continues to provide a subsidy of 11 seniti per kWh for the first 200 kWh, the new rate is 50.71 seniti for Tongatapu and 52.71 seniti for Vava'u for the first 200 kWh.

But when government terminates its 11 seniti subsidy, then the electricity consumers in Vava'u will pay the most expensive electricity in the whole of Tonga at 63.71 seniti per kWh, followed by Tongatapu consumers at 61.71 Seniti per kWh.

The TEPB board noted that the 5.21 seniti per kWh increase would not allow the service provider, Shoreline, to make additional profit but, "merely allow them to recover the fuel price increase borne by them."