Plans to Increase Electricity Costs for Business, Government Ministries and State Owned Enterprises


Translated from FaaSamoa. The Electric Power Corporation has plans in the pipeline to increase electricity costs for businesses, government ministries and state owned enterprises.

In an interview with EPC General Manager, Faumui Tauiliili Iese Toimoana, he explains the increase will come via the removal of the 20% discounted rate which was implemented in 2021 during the covid 19 pandemic.

Faumui explains that for households, there will be no change and the 20% discounted rate remains. “So there is nothing for the public to be worried about.”

EPC GM Faumui Tauiliili Iese Toimoana.

“Ae mo le mamalu lautele lava ia o le atunuu, o loo tumau pea le 20% o loo pa’ū maualalo ai le tau o le iunite e pei ona iai i le taimi nei, ma e leai se tulaga o le a faapopoleina ai le atunuu.”

The Faatuatua i Le Atua Samoa ua Tasi had run an election campaign for lower costs of government essential services.

In the announcement of its first budget estimates, the government was true to its word and slashed the cost of most government services by 20% including electricity, water, ferry tickets to Savaii, even vehicle registrations and passport processing costs.

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Faumui says the income of EPC was also gravely affected during the economic crisis brought about by covid, however, it absorbed the 20% drop in unit prices as part of its community service obligation to the country during that period.

The corporation is now unable to maintain financial viability and sustainably meet costs of service delivery, according to the General Manager.

SGN understands a submission has been presented to the Parliamentary Select Committee overseeing the EPC outlining forecasted maintenance and future projects of the corporation, and the need for funding options such as the proposal to increase the unit cost of electricity.

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It is inevitable that increases imposed on businesses and state owned enterprises are passed on to consumers through cost of products and service fees.

The cost of living in Samoa continues to remain high post pandemic with June figures showing the annual average headline inflation rate at 12% – much higher than 8.8% in June last year. June figures also shows local inflation increasing from 8.7 to 9.2 percent despite a reduction in imported inflation from 15 to 14.5 percent.

The latest financial results for EPC published on the Ministry for Public Enterprise (MPE) website is from 2016.