Govt. accused over fees

The Shadow Minister for Works, Transport and Infrastructure, Levaopolo Talatonu, has accused the Electric Power Corporation (E.P.C.) of breaking the law.

He has also criticised the National Bank of Samoa (N.B.S.) over what he described as an “illegal process.”

The allegations come in the wake the 50 sene fee that has been added too cash power transactions under $20 tala via the N.B.S. M.P.O.S. machines.

“This sort of process is illegal according to the process of legislation and the law,” he said. “There is a reason why E.P.C. has a legal advisor.

“Where was he or she when the contract was signed did he or she advise the management of the E.P.C. (of) that?”

As of yesterday, the 50 sene charge had been removed from the transaction.

Repeated attempts to obtain comments from E.P.C. and N.B.S. including emails and phone calls were not responded to at press time.

Last night however, a press statement from the Office of the Regulator came through.

It reads: “The Regulator recently approved new electricity tariffs for the Electric Power Corporation, which did not encompass an additional .50 sene service charge.

“The .50 sene service charge that was levied on electricity consumers buying cash power at $20 or less has now been removed and is no longer in effect. The Office of the Regulator will continue to monitor the situation to ensure compliance with the approved tariffs.”

But Levaopolo is not happy. He also questioned the legal advice of both the Attorney General, Aumua Ming Leung Wai, and the Regulator, Donnie Defreitas.

Not only that the Member of Parliament (M.P.) says if there was a proposal or contract signed between the E.P.C. and the N.B.S. bank, those people who undertake the consultations for tariff changes should understand that a law exists for that to happen.

“They can never add something else on top of this tariff,” he said.

“That was my concern so the legislation says never add one cent on the tariff approved by the management of E.P.C. because they are the ones who make the consultations on the tariff every month because it changes according to the diesel prices.

“And it is approved by them, it is approved by the Board, approved by Cabinet, approved by Parliament but who has the authority to supersede all this approval from all these high profile (offices) as well as the Regulator?” he asked.

According to the Electricity Act 2010, the Regulator shall set all tariffs charged by a licensee.

“The Regulator shall set the base tariffs of the electricity network services licensee, including a fuel cost adjustment mechanism, within every 3 year period,” the Act reads.

“A licensee who fails to comply with the tariffs set by the Regulator under this section commits a breach of the licence conditions and is, upon conviction, liable to a fine not exceeding 1,000 penalty units, and 100 penalty units for each day that the breach continues.”

Levaopolo said not only is this process illegal, the N.B.S. is already taking a commission from every Cash Power transaction made with their machines.

“The Bank is charging twice - once through their commission and the other is the 50 sene,” he said. “Because they receive a commission every month, which I thought would be enough to cover services.

“That figure is their commission (on the receipt) –is more than enough to service the public.

“So in other words they are charging people twice.” Levaopolo says he only found out about this issue when people in his constituency of Gaga’emauga rang him wanting more information about the charge.

“I never got any information from them so I have looked at the tariff legislation and I know that it is illegal for them to do so (charge the extra 50 sense).

“I understand that the banks idea is quite helpful for the public to facilitate cash power on mobile phones and all that.

“I don’t like the process of letting the public pay for their fees. That is the responsibility of the E.P.C. to negotiate how the bank can get their commission.

“But not from the public, not from the public, never.”

He said before N.B.S. took over the payment system, consumers got what they paid for.

“Remember the days before the N.B.S. took over this payment?” he asked.

“If you and buy $20 cash power you only paid $20, $20 straight, just $20 nothing else. I also heard that this 50 sene is a fee for people buying $20 and below but $21 upwards no 50 sene.

“I want to understand why? From my own perspective, the only reason why they do that is to encourage people to buy units over $20.

“But most of our people, especially the poor people of this country, they can only afford $5 or $10 tala. They only have one light, one power point plug, that is all they need.

“But it is an idea for the E.P.C. to get more money out of the public’s pocket because if they buy $21 then no 50 sene (is added).

“It is a responsibility of the E.P.C. to make sure that the burden of this cannot be given back to the public.”

The Shadow Minister said beyond the alleged illegality of the charge, E.P.C. has a social responsibility to Samoa.

“To make sure you have to look at all possible ways to bring the cost of electricity down,” he said. “But not for this kind of process they are letting the people pay more to them.”

He references the Community Service Obligation (C.S.O.) of the Corporation as a public body, which is defined in the Public Bodies Act 2001.

“The provision of a good or service by a Public Trading Body to a consumer or user on any terms other than normal commercial terms applying from time to time,” the Act reads.

“The entering into an agreement by a Public Trading Body on any terms other than normal commercial terms applying from time to time.

“The forbearance by a Public Trading Body to exercise a right or entitlement other than on normal commercial terms applying from time to time.

“Nothing in this part shall prevent a Public Trading Body from exercising a commercial judgement to make donations to worthy causes or to price goods and services at or below the cost of their production.”

The Act, says the Minister may also direct the C.S.O. if the performance of the obligation is necessary to ensure “That there is access to a necessary good or service.”

Levaopolo says E.P.C. has a budget to fulfill their C.S.O.

“Every year the annual budget the public has given the E.P.C. a community services obligation (budget),” he said.

“So this is kind of service for the E.P.C. to use this money this is the money given back to E.P.C. by the public to pay for this kind of services.

“But instead of doing that they leave the community services obligation fund here and then charge the public again.

“It is not fair it is not good and as I said, that breaks the law.”

He said all he wants is for the public to no longer be charged this fee.

“And my conclusion is I want the government to stop this process.

“And I want the A.G. to have a close look at this whoever breached the law; he does his job.

“Because this process affects everyone the whole of Samoa; it badly affects everyone.

“So what are they going to do? Are they going repay or refund all these 50 cents from every consumer?

“Because it is very simple, the consumer will ask for legal action.

“There is no doubt the National Bank was doing a very helpful idea but it is only because the 50 sene is on their receipt that is a problem.

“They should find another way for them to get a commission from the E.P.C.

“And that service by the bank should be done using this C.S.O. money funded from the public every year.

“So whoever has the authority to do this sort of process has definitely breached the law.

“So this has to be stopped now.”

Both the N.B.S. and the E.P.C. were contacted in regards to these allegations.

Neither was forthcoming at the time of press with a comment.

Aumua responded saying if there is any overcharging, then a complaint may be filed – depending on the nature of the complaint – either to the Ministry of Commerce or the Regulator, to assess the complaint and deal with it under their respective legislation.