21 Feb 2008

Tonga power company increases electricity charges by 21 percent

9:22 am on 21 February 2008

The Tonga power company, Shoreline, has increased its electricity charges by 21 percent to offset an increase in the price of fuel this week.

The King is a major shareholder of Shoreline, but the government is trying to raise money to return the company to public ownership.

Shoreline says it's aware that the increase of 8 US cents a unit is high.

But its chief operating officer, David Dunkley, says it must be done because it's paying more for fuel.

"It's very expensive. But at the same time, fuel costs have gone up by 40 percent. The cost for us in generating electricity goes up exactly the same way. All fuel costs need of course to be paid for. If it's not paid for by the tariff then the only other option would be for the government to subsidise it."

David Dunkley says he proposed that Tonga look into generating electricity through wind energy.