TONGA: Power charges hurt families
Updated
Lobby groups and businesses in Tonga say new electricity price hikes will hit struggling families and could force people out of jobs. Tongan power company Shoreline, which is owned by the King, has put electricity charges up by 21 per cent, to offset rises in the price of fuel.
Presenter: Jean Edwards
Speakers: Lavinia Palei from the National Centre for Women and Children;
David Dunkley, executive director of the powerfirm Shoreline; Women's rights activist, Ufa Kutamba Likiki
PALEI: We were really shocked when our electricity bill came last week. It was almost 200 dollars and so what about the families where members of the family don't have any job to pay for all of these expenses? Most of the Tongan families will rely on remittances or money offered by their families overseas.
EDWARDS: Women's rights activist, Ufa Kutamba Likiki says many families are already finding it a challenge to pay for essentials, such as education, health care and transport. She says they will have to take drastic steps to save money, such as turning power off at night, because government subsidies for households aren't enough to stop them suffering financially.
LIKILIKI: If an average household in Tonga is used to paying 40 to 50 pa'anga per month for their electricity, with this 20 per cent rise they could now be looking up to 70 pa'anga. So that's quite a big junk. And the average household income is sitting around 150-180 pa'anga per week.
EDWARDS: Lavainia Palei warns the extra financial strengths may also breed social problems.
PALEI: Families, mothers who are coming to the centre say that with the increasing price of electricity, domestic violence also increases because the father and mother can't afford to pay for it, plus the fact the necessity of life is water, electricity, and food cannot be afforded by the families. So there will be a huge struggle to survive in Tonga by this increase made by the Shoreline company.
EDWARDS: Ufa Kutamber Likiliki says public anger over the 21 per cent price rise is likely to grow, with many residents due to get their first bill after the increase at the end of February. She warns the effects of more expensive electricity won't just be felt in Tonga.
LIKILIKI: This will have a ripple effect to our relatives, our friends living in Australia, particular Australia, New Zealand and America, where remittances will also have to increase, because a lot of Tongan families depend on remittances to pay for things that they cannot afford to pay for here in Tonga. So this again will have an impact on our Tongan communities living in Australia, Tonga and America.
EDWARDS: Tui Uata, is the chairman of the Tonga Small Business Association. He says many businesses are already in financial difficulty and the higher electricity costs may drive some operations like bakers out of business altogether.
UATA: All of a sudden, the breadmakers - the price of the bread from $1.20 to $1.75 and in Volaju, it's $2, two pa'anga. That dramatic change means most people don't buy bread anymore. You see and now those businesses are struggling where are they going to get their revenue from?
EDWARDS: Mr Uata says the cost of electricity is forcing some Tongans to eat tinned fish, instead of fresh, because it's too expensive to eat frozen or refrigerated foods. David Dunkley is the power company Shoreline's chief operating officer. He admits he's concerned about the impact of the price increase.
DUNKLEY: The domestic energy costs as a proportion of income is far greater than people in Australia or New Zealand would experience. So it has a very big affect and I mean we are very conscious that this change will really hit the pocket of the ordinary person in Tonga.
EDWARDS: Tui Uata says the country's leaders need to be more careful about making such decisions.
UATA: Big monopolies such as this, that is owned by the King, have to be a little bit more responsible and even if they're goind to make that kind of dramatic increase, to have a more streamlined way of gradually increasing it. This kind of deals is what makes people have heart attacks and there has to be a more of a leadership role in the King and the government in looking at how the people live, how the businesses live and to look at the way to move the economy forward.
