Cost of electricity under review
There might be some changes to the electricity tariffs for the next financial year, 2016/2017.
This follows the Multi-Year Tariff (M.Y.T.) Review and proposal for the changes to electricity tariffs which were made by the Electric Power Corporation to the Office of the Regulator on the 26th May 2016.
Under the Electricity Act of 2010, the O.O.T.R. shall conduct public consultations before making a final decision on the E.P.C. proposal.
The purpose is to gather stakeholders input on the proposal by E.P.C. and carry out an Annual Review on the impact of the Multi-Year Tariff.
The Office of the Regulator in collaboration with the Electric Power Corporation have been conducting consultations with the private sectors, Government Ministries and the village mayors regarding the Multi Year Tariff together with the E.P.C. proposal for a new tariff structure and electricity rates.
This week was Upolu’s turn to listen to the proposals and share their views on what needs to be improved.
And yesterday was the village mayor’s turn and the event saw more than fifty mayors from all around Apia gather at the Conference Room at the T.A.T.T.E. Building.
“We are conducting consultations at the moment for members of the public so they will be well-aware of what has happened and what will happen next. We are also getting a lot of feedback from them on how to improve and what their views are,” said Regulator, Unutoa Auelua Fonoti.
“The Office of the Regulator will compile the feedback from the Public/Private Sector/Government Ministries/Pulenuu/Sui o Nuu to assist in the Review of Proposal before the Regulator makes her final decision.
“Once the Regulator makes the final decision, E.P.C. will then inform the public through the media before its implementation.”
According to a Powerpoint presentation by the Office of the Regulator which was obtained by the Samoa Observer, O.O.T.R. will continue to review the proposal and will present the findings first to their staff when complete, with tentative determination scheduled before end of June 2016.
“On face value and after first analysis, proposal looks favorable for E.P.C. Proposal reflects continuous reductions in tariff for next financial year,” according to the presentation.
According to the Electricity Act 2010, the timeframe required for the Regulator to make a decision to accept or reject a proposal from a licensee, such as E.P.C. for tariff change is six (6) months.
So if the E.P.C. submitted the proposal on 23 May 2016, the Regulator should make the final decision by November.
The E.P.C. and the Office of the Regulator will host consultations for the big island of Savaii next week.