The Regulator has approved the electricity tariffs for Government ministries with the new power prices to be implemented by the Electric Power Corporation (E.P.C.) and to go into effect retrospectively from 1 July 2023. 

The new electricity tariff rates were highlighted in an order issued by the Regulator, Lematua Gisa Fuatai-Purcell in an order paper No. 2023/E89. The order dated 19 September 2023 was made pursuant to section 20 of the Electricity Act 2010 ('Act'). 

"The Electric Power Corporation has sought approval from the Regulator to implement retail rates charged to electricity consumers for the provision of electricity services," the Regulator's order stated. "The Order sets out the approved changes in tariffs as per Cabinet directive."

According to the order, the change in tariff is per unit of electricity for Government entities using prepaid meters (Cash power and Smart meters) with the E.P.C. now permitted to charge $1.02 per unit or kWh. For Government entities on induction meters (readable power), the E.P.C. is permitted to charge $1.05 per unit. 

The order will expire when the Regulator revokes Order No. 2023 E89 or the making of a new order by the regulator with respect to the tariffs, rates or charges for the provision of electricity services by E.P.C. 

"In accordance with the Regulator's functions under Section 6 of the Act, the Regulator shall monitor the tariffs, rates or charges for the provision of electricity by E.P.C. 

"In accordance with section 20(5) of the Act, the E.P.C. shall not charge the above-mentioned rates until such time when the E.P.C. has notified consumers of the new tariffs. This order is effective retrospectively from the 1st of July 2023."

In July this year, the E.P.C. General Manager Faumui Tauiliili Toimoana said in an interview with this newspaper that the Government will not revoke the 20 per cent electricity bill reduction for residential homes and businesses. 

Cabinet had revoked a 20 per cent discount on electricity tariffs for Government ministries, state-owned enterprises and government bodies. 

In February of this year, the Samoa Observer revealed that the 20 per cent reduction in electricity bills has proven costly for the E.P.C as they've failed to meet operational demands leading to a SAT$60 million loss at the end of 2022. The E.P.C. then proposed a return to cost-based tariffs which means Samoans could be looking at an increase in electricity bills.

Last year, the E.P.C. Board made recommendations to the Cabinet to return to a cost-based tariff which meant removing the 20 per cent discount in order to prevent losses and avoid E.P.C. becoming insolvent in the future.

The Government's policy of the 20 per cent reduction on electricity tariffs which came into effect in November 2021 was in line with the ruling party's election promises.