The Government of Tonga continues the electricity price subsidy to the March 2023 quarter since the current price of electricity still appears to remain much higher than the usual monthly bill for most customers.
Allowing for the reconciliations noting that some customers have already paid their bills, the cost of subsidies for January-February 2023 should be reflected and settled together in the March 2023 billing. The government subsidy will cover both categories: (i) residential customers whose units of consumption are less than 150 kWh; and (ii) the rest up to March 2023. The December 2022 review indicated that the electricity tariff would decrease from $1.19 per kWh to $1.01 per kWh, effective from the 1st of January 2023. With the 18 cents per kWh decrease in electricity tariff, the estimated total subsidy for January 2023 is less than an average monthly of a million in the past six (6) months.
The continuous provision of government subsidies is to assist in reducing the burden of high electricity prices for all households, including businesses, particularly during these challenging times.
For further details, please contact Mr. Sione Faleafa or Ms. ’Ana Ika at the Economic, and Fiscal Policy Division, Ministry of Finance, at (676) 7400752 or email sfaleafa@finance.gov.to or aika@finance.gov.to .
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