Good morning business colleagues
The Chamber is aware of the impact of the high electricity price on all the businesses in Tonga, even before the recent price hike.
With the long term outlook for fuel prices likely to continue upward it is imperative that government set in place measures to minimize the impact on business through increases in all our electricity bills.
We have been working on issues that we feel would lead to a solution/s that will give all electricity consumers the right price; a price that will allow the generator/distributor to have a sustainable business that can provide Tonga with fair, safe, secure, efficient and sustainable supply for our electricity needs.
The Chamber's business cost sub-committee has been instructed to look at the issues and recommend ways how this can best be done. We have in place a new Electricity Commission and a new operator, operating under a new act. The mechanism for regulation and enforcement is new – the Concession Contract.
We accept that fuel increases will be passed on but we want systems in place to ensure that increases are fair i.e. due to fuel increases and so on. Also we want systems, generators, etc in place which are appropriate and efficient. As we understand it the ‘concession contract’ addresses these issues. However, we need to have visibility into these processes and have input.
We will look into these issues and work with government to urgently implement appropriate ways to reduce the cost of fuel e.g. Samoa example where they bypass supplier from Fiji, look at alternative energy sources for electricity eg wind, biomass, etc. We know that government have plans in place in these areas to reduce our electricity cost but we will want to ensure they act quickly and rationally to implement them.
Malo & regards
Paula Taumoepeau
President, Tonga Chamber of Commerce & Industry