Urgency needed to address power crisis

By The Editorial Board 27 March 2025, 5:56PM

The country is already in a State of Emergency, which should have been declared the minute, the extent of the power crisis' impact was known. One government ministry has backed the call and surely others are following suit.

Finance Minister Lautimuia Uelese Vaai supported the call to declare a State of Emergency due to the power crisis that has gripped Upolu impacting businesses and communities. The prolonged power crisis can lead to disruptions in essential services, economic hardship, health risks, and social unrest, impacting businesses, households, and the overall quality of life.

Businesses have to readjust operational hours and turn away customers disrupting the cash flow for many. Schools are unsure if it is a full day of class or if children will be sent home early. The university has been having trouble as well.

Businesses are being forced to close early disrupting supply chains, and loss of productivity, impacting small and large enterprises. Economic growth and development have been hindered by disrupting essential services and this situation will discourage investment.

Many multi-million dollar projects have had to hold back work because of the power situation. These are not signs of economic growth and progress.

Businesses are incurring additional costs to maintain operations during outages, such as using backup generators or relocating operations. This cost is going to be passed down to the consumer and one major food wholesaler has stated that.

Ah Liki Wholesale Business Manager Clyve Westerlund said the company has not yet increased prices but may have no choice if power disruptions continue. “Eventually, it’s going to reach a threshold where those costs would have to be passed on to the consumer. We haven’t reached that threshold yet… but going forward, we can see that, yes, we’re going to have to slowly add costs to all our products and services. This wouldn’t necessarily just be us—it would be other wholesalers and retailers as well.”

In severe cases, this power crisis will cause job losses as businesses struggle to stay afloat. Some businesses are hinting at that. That will be a dent in the economy and the fight to get back to pre-COVID levels could be thwarted again. We have just recovered from the pandemic’s cruel effects.

The power fluctuations and surges have damaged sensitive electronic equipment, leading to further costs. Daily routines have been disrupted, making it difficult to cook, wash, communicate, and access essential services.

We are also looking at health risks. Lack of power has led to food spoilage, potentially causing food shortages and health problems. Darkness and disruptions have created opportunities for crime, leading to increased safety concerns. Water treatment and distribution systems have been affected leading to water contamination.

Samoa is a popular tourist destination, and a prolonged power crisis could deter visitors and negatively impact the local tourism industry. Power outages will damage critical infrastructure, such as water treatment plants and sewage systems, further exacerbating the crisis.

In order for SOE to be invoked, the Disaster Advisory Committee (DAC) has to make recommendations to the cabinet who will then advise the Head of State to make the proclamation. The EPC has the financial capacity to accommodate the short-term solution whereas the long-term plan requires government assistance. This would see the state stepping in and providing support through concessional lending from development partners.

It also seems that there could be a hesitance in declaring a State of Emergency right away and it could do with the availability of finances. How about bringing an end to the district grant and using the funds to come up with stimulus packages for businesses, communities and schools?

In reality, the short-term solution would give temporary relief, but the real issue of broken generators caused by delays in maintenance persists and needs a long-term solution that requires renewable energy. A chain reaction has happened where one neglected machine led to overloading others and now, we are looking at a power crisis that is deteriorating day by day.

Declaring a State of Emergency is just one step in addressing the power crisis. If something is to be done, it has to be done urgently.

By The Editorial Board 27 March 2025, 5:56PM
Samoa Observer

Upgrade to Premium

Subscribe to
Samoa Observer Online

Enjoy unlimited access to all our articles on any device + free trial to e-Edition. You can cancel anytime.

>