ELECTRICITY TARIFF DECREASE EFFECTIVE FROM 1ST JULY 2017
NUKU’ALOFA-June 28: 12:38pm(Nuku’alofa Times): Since the last Electricity Tariff adjustment came into effect on the 1 st April 2017, the landed cost of diesel used by Tonga Power Ltd to generate electricity has decreased by 5.57 seniti (4.08%) per litre.
This has resulted in a reduction of diesel prices, as approved by the Competent Authority, from 136.68 seniti per litre to 131.11 seniti per litre as at end of June 2017.
This in turn led to a decrease in the “Fuel Component” (41.51 seniti/kWh) by 7.31 seniti per kWh. However, the annual inflation increased by 6.2% resulting in a much less increase of 2.65 seniti/kWh to the “Non-Fuel Component” (44.35 seniti/kWh).
The net movement in the power tariff has therefore decreased by 4.66 seniti (7.31 seniti – 2.65 seniti) per kWh from 85.86 seniti per kWh to 81.20 seniti per kWh, a 5.4% reduction in tariff from last quarter.
The Government of Tonga (Shareholder) in response to the high cost of imported diesel continues with the implementation of the “Life Line Tariff” subsidy offered in April 2017.
The Government’s lifeline allows all residential consumers who use less than 100 units of electricity each month to maintain an Electricity Tariff of 70 seniti per kWh or 11.20 seniti tariff reduction for the first 100 units (kWh) consumed each month effective from 1st July 2017.
All other residential customers using more than 100 units (kWh) of electricity and non-residential customers will pay the new electricity tariff of 81.20 seniti per unit (kWh).
The revised Electricity Tariff rates approved by the Electricity Commission (Regulator) will be effective in respect of all electricity supplied by Tonga Power to electricity consumers on or after 1st July 2017 are as follows:
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