As Tonga's electricity price goes up by 20.7% to 23% tonight households and small businesses will wake up in the morning to face the fact they will be paying hundreds of pa'anga more for their electricity supply this year, while for larger businesses the new rate will increase their costs by thousands of pa'anga per year.

The price of electricity will rise by up to 15 seniti per unit in Tongatapu, Vava'u, Ha'apai and 'Eua as from mid-night tonight, General Manager of Shoreline Power, David Dunkley announced in a statement released at 3:30 pm today.

He stated that Vava'u electricity consumers will pay the most for their electricity, at 85.15 seniti per kilowatt hour (20.7% increase), followed by Tongatapu consumers at 83.15 per unit (21.4% increase), and Ha'apai and 'Eua consumers at 78.15 per unit (23% increase).

For Tongatapu consumers this is an increase of 14.64 seniti per unit.

This means that a typical small business consumer who uses 500 units a month will pay $878 more this year for their power supply, with their total annual consumption now costing $4,989.

A household that uses 200 units a month will pay $352 more this year for their power supply with their total annual consumption now costing $1,732, after a subsidy.

In Vava'u it will cost even more.

Shoreline also reminded consumers that, "the government subsidy of 11 seniti per kilowatt hour, for the first 200 units of power used each month for domestic users in Tongatapu and Vava'u is still in place and is considered by the government on a month to month basis."

A release from the Tonga Electric Power Board earlier in the morning stated that there had been an application by Shoreline Power for an increase in the price of electricity to offset an increase in the price of diesel by 40%, from 125 seniti per litre in June 2007 to 175 seniti per litre in January 2008.

Castalia Ltd., the Economic and Strategic Advisors for TEPB, advised that a 21% increase in tariff was justifiable to cover the increase in fuel costs.

British Petroleum is the supplier of diesel to Shoreline Power and the price is regulated by the Tonga competent Authority.