The delayed effective date for the 20 per cent
reduction on electricity tariff, was due to the late arrival of a directive from Cabinet, the
Minister of Works, Transport and Infrastructure (M.W.T.I.), Honorable Olo Fiti Vaai has clarified.
Whilst Cabinet endorsed the 20 percent reduction to electricity tariffs last Wednesday, the
Electric Power Corporation (E.P.C.) cannot implement changes without a Cabinet Directive (FK).
Last month the Corporation proposed to apply the rate reduction intermittently over the next
three quarters, effective November 1 st , starting with 8 percent. However, this was declined by
Cabinet.
Instead, Cabinet approved the total 20 percent reduction in electricity rates as this is what they
promised the people, Hon. Olo said.
The change which came into effect November 10 th , applies to both prepaid (Cash Power) and
post-paid consumers. However, the Corporation has implemented the 20 percent reduction for
prepaid consumers first while discussions continue for induction meter users, including the first
100 largest consumers. It is anticipated for these new rates to be revealed next week.
The new tariff change means the cash power Domestic Consumers will be charged $0.52 sene
per unit (in contrast to $0.65 sene in October) for the first 1-50 units (kWh). However, once
usage exceeds, from 51 units and over within a month, domestic consumers are charged $0.63
sene per unit (from $0.79 sene in October).

Meanwhile, non-Domestic consumers will pay $0.63 sene per unit (from $0.79sene) for all units
purchased within a month.
Currently, a large number of families are yet to connect to electricity, and with the decreased
tariffs, increased demand is anticipated.
The Hon. Minister highlighted that whilst generating revenue is an imperative role of the
Corporation, the E.P.C.’s core mandated function is to generate, distribute and sell electricity
supply to all of Samoa on an economical scale. And by reducing electricity tariffs by 20 percent,
the Corporation is a step closer to achieving its vision of ensuring there is increased access by all
people of Samoa to quality and affordable electricity supply.
In addition, the Hon. Minister also rejected Opposition claims that the 20 percent reduction to
electricity rates is “bait” to lure votes as claimed by Falelatai and Samatau M.P. and former
Electric Power Corporation (E.P.C.) Chief Executive Officer (C.E.O.), Lupematasila Tologata Tile,
earlier this week.
“We have reduced 20 percent of electricity costs to ensure all people of Samoa have increased
access to affordable and quality electricity supply at all times,” he said.
“If that is what Lupematasila thinks, I can happily ensure his constituents are excluded from this
beneficial project the new Government has enacted.”
Hon. Olo assured that the Government sought advice from the Corporation and Board, coupled
with a Treasury report from the Ministry of Finance before moving forward with the approval.
He noted that long before the April 2021 General Election, F.A.S.T. economists conducted
assessments on the operations of the Corporation and found that reducing electricity costs by
20 percent is achievable.
“Lupematasila is throwing jabs at the E.P.C. for something he did not dare to do for the benefit
of the Samoan people. He only focused on making a profit to please the previous Government,”
he said.
“It was his decisions during his time as C.E.O. that led to the increasing prices of electricity over
the years, starting with some of his dealings with Independent Power Producers (I.P.P.) in 2015.
As C.E.O., Lupematasila approved buying units from a Solar IPP for .92 sene and resell for .65
sene; I don’t know how this was arranged; it is a huge loss for E.P.C.
“These are the sort of things from his time as C.E.O. that we are now trying to sort out, and
frankly, the former Corporation C.E.O. needs to sit back, relax and watch how it’s done.”
Hon. Olo thanked the Corporation Chief and his team for fully supporting and implementing the
new move introduced by Government.

“The E.P.C. now has an electrical engineer heading its operations. I believe he is the right
person for the job. He fully understands what needs to be done and how we can take the
Corporation’s services further,” said Hon. Olo.
“I was told that this tariff reduction initiative is something that should have been done a long
time ago, but the employees did not have the chance to voice their ideas.
“Whilst the Corporation’s finances will take a hit from this tariff reduction, I have been assured
that there is more than enough left to cover their operations.
“I have also advised the E.P.C. that seeing more families connected to electricity and having a
reliable service available to the people of Samoa is more important to me than seeing them
make money.”

PREPAYMENT METER USERS (CASH POWER)
Domestic Consumers will be charged with the following rates:
kWh Total Cost per Unit
1 – 50 $0.52
51 and Over $0.63

Non-Domestic Consumers will be charged with the following rates:
kWh Total Cost per unit
All Units $0.63