When the Electric Power Corporation announced a $3.52 million loss for the 2023/2024 financial year, it highlighted that increasing diesel costs could affect further revenue.

The 2023/2024 Annual Report is the latest available on the EPC website and accessible to the public. The 2024/2025 Annual Report is yet to be made public.

EPC general manager Faumui Tauiliili Toimoana in his report, stated that the EPC ended the year with a net loss and other comprehensive income of $3.52 million, compared to $54.83 million in the previous year.

He said electricity sales of $159 million represented 94 per cent of total income for the year.

“Imported diesel fuel of $109.9million is the major expenditure for this period and accounts for 75 per cent of the Total Electricity Costs of $146.58 million,” he said in his report.

“Fuel costs remain a major concern as they are directly tied to production expenses. This issue is compounded by increasing costs for materials essential to the Corporation’s operations and higher shipping expenses, as all supplies are imported.

“While the average fuel price for the financial year decreased slightly by 3 sene per litre, it remains high at $2.90 per litre compared to $1.80 per litre in 2021.”

As of May 2026, the diesel price has gone up to $4.50 per litre, which means that operational costs for the EPC have also increased.

According to the 2023/2024 Annual Report, total government debts as at the end of the financial year were $8.1 million, which includes current billing of $3.6 million.

There was improvement in the payment of electricity consumption by government ministries and corporations; however, the major increase was due to the non-payment of electricity consumption for street lights.

EPC noted that VAGST receivable decreased by $16 million and was a result of the $23 million swap of cheques for payment for PSEP loan.

The electricity production as at the end of the 2023/2024 financial year totalled 214,707,698 kWh, a 13 per cent increase compared to 189,757,533 kWh in the previous year. Total diesel production increased from 130,814,510 kWh in the previous year to 150,855,866 kWh, a 15 per cent increase. Total renewable energy production increased marginally from 58,939,880 kWh in the previous year to 63,851,832 kWh, primarily due to Upolu Hydro, totalling the overall contribution to 30 per cent, compared to 31 per cent in the previous financial year.

EPC registered 44,602 consumers overall as of the end of June 2024, a 2.7 per cent increase from the previous year. The overall user base was made up of 1,584 non-prepayment meters, including 120 large consumers on fixed rate and 43,018 prepayment meters.

In its further outlook, Faumui stated that the current governing legislation and mandate requires a thorough review for sustainable and accessible electricity service delivery, in addition to meeting obligations under the mandated Public Performance Accountability Act.

He said the removal of the 20 per cent tariff reduction for nondomestic consumer was a huge relief for the EPC and it is anticipated that it will further reduce losses in future years.

“The increase in electricity production from diesel is a concern for the EPC as the average diesel prices is $2.90 per litre and is forecasted to increase gradually. This will drive costs of productions up due to the increasing demand for electricity,” he warned.

“The uncontrollable changes in weather patterns remain as a hindrance factor for the EPC given its impact on the level of generation from renewable sources. This poses the risk of reverting back to thermal, which is the costly source of generation.”