High power bills prompts price increase

By Talaia Mika 12 March 2024, 8:00PM

As electricity costs surge, some shops are feeling the pinch, prompting many to raise prices on their goods. The ripple effect of escalating energy expenses is now hitting consumers' pockets directly.

Last year, the government revoked the 20 per cent discount on the electricity cost for commercial customers. However, the businesses are concerned that their electricity has not increased by 20 per cent but instead increased doubled what they normally paid.

One of the businesses affected is the Tarah Ice Company which produces ice and sells it in ice sacks. They have added 50 sene to the normal price of ice sacks of as December last year.

Office manager, Susana Tauati told this newspaper that they are seriously affected and one of the ways they are resorting to overcoming the expensive electricity is turning off their other machines which also slows down their work as well as their sales.

"The electricity is very expensive because before the revocation of the 20 per cent, we used to pay around $1,000 a month and sometimes add $500 if we needed to but now, the $500 cash power can only last us for two and a half days," she explained.

"We are working on ways where we can help ourselves save the power and one of them is turning off other machines or not using them while we try and find more ways to go about with this."

Before the reduction, the price for one ice sack was $3.50 if bought from any Tara Ice retail shops, while for delivered ice sacks, it was decreased to $3 but now 50 sene has been added to both prices.

"We disbursed some letters to inform our customers and clients about it before we increased it, especially around December last year during the busy season," she added.

Other shops that have also increased the prices for their items were the Bargain Shop in Vailoa and a few other shops which did not want to be named in the newspaper.

The manager of the Bargain supermarket who did not want to be named said a few of the items that have increased prices in their shop are the water bottle trays, Samco snacks, and ice sacks.

"We did not increase them we bought them with increased prices from suppliers because they said the electricity price went up," he said.

The price for a sack of Samco has increased from $23 to $28 while the water bottle trays increased from $11 to $12.

Papa's Store in Lelata said they have yet to increase prices for their items but have confirmed that the increase in the cost of electricity is affecting them.

The owner said the price they used to pay before the revocation of the 20 per cent discount was $3000 a month and now they pay around $6,000 a month.

Samoa Observer spoke to a few other businesses and shops on the matter and they expressed they similar sentiments about the increased power cost but did not want to be named. 

Meanwhile, consumers, already grappling with inflation and economic uncertainty, are now confronted with the reality of steeper prices at the checkout counter. 

Many expressed frustration and concern over the additional strain on their budgets. For some, this means reevaluating spending habits and prioritising essential purchases. 

For consumers and businesses alike, adapting to this new normal may necessitate adjustments in behaviour, expectations, and financial planning.

By Talaia Mika 12 March 2024, 8:00PM
Samoa Observer

Upgrade to Premium

Subscribe to
Samoa Observer Online

Enjoy unlimited access to all our articles on any device + free trial to e-Edition. You can cancel anytime.

>