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Clik here to view.A drop in the tariffs by the Electric Power Corporation (E.P.C.) over the next three years is to be decided by the Office of the Regulator (O.O.T.R) next month.
This was discussed with members of the Chamber of Commerce on Friday at the Millennia Hotel.
Similar meetings were held over the past weeks with stakeholders such as government, State Owned Enterprises, Civil Societies and others.
The proposed Tariff Structure totals an 18 sene decrease over the next three years and effective on July 1.
At present, the amount paid by Non- Domestic users is at $1.11 per unit. If approved by July, this would then decrease to $1.06 per unit, then $1:04 next year and to 93 sene in 2017.
For the Non-Domestic users, the charge per unit breaks down to usage charge, 39 sene, debt charge 17 sene, fuel charge 55 sene.
Total cost is the $1.11 per unit.
Manager of the Electricity Division, O.O.T.R., Afoa Uelese Va’ai said that there are three components to the electricity costs.
These are the usage charge, which covers all other E.P.C. costs, the debt charge, and the fuel charge.
The debt charge, which will now be changed to investment charge, is the repayment of E.P.C’s loans. The fuel charge is the payments made for diesel.
“The fuel charge fluctuates every month and the Office of the Regulator and E.P.C. reviews this depending on fluctuation on the cost of fuel on a monthly basis,” Afoa said.
If your business is on cash power, a two percent discount is also given on the usage charge for both households and businesses.
Afoa said that the proposal reflects a continuous reduction in electricity tariffs for the next three years 2015-2018.
“The question for O.O.T.R. is to determine whether the reductions are ‘just’ and reasonable.”
“The proposal was received in March so the Regulator should make a decision by September of this year. However, E.P.C. has requested the O.O.T.R. for its review to be completed and a decision to be made so that the proposed tariffs be effected from July of this year.
“Our intention is to ensure that the understanding of the community and the role of the Regulator in the review of the tariffs.”
Since the new Electricity Act, 2010, O.O.T.R.
has had the authority to review and issue licences to independent or potential power producers and to approve and review changes to E.P.C. tariffs.
FACT BOX
• E.P.C established under Electricity Act 1972, and is fully owned by Government.
• Three broad divisions: Operations, Development and Corporate.
• Employs about 400.
• Provides power to 98 per cent of Samoa • Approximately 34,214 customers; domestic and non-domestic.
• Average total production 114,351,019 kWh per annum.
• 34 percent produced from hydro; 65 percent from diesel; 1 percent from renewable energy sources.
• Generation fuel consumption averages 22 million litres diesel per year, approximately SAT$59 million, represents 60 percent of costs per annum.