Nuku‘alofa, Tonga – Tongan households will be protected from a newly announced electricity price increase, with the Government stepping in to cover the additional cost as part of a broader relief package responding to the ongoing energy and fuel crisis.
Prime Minister Lord Fakafanua confirmed during a weekly press conference that, although the Energy Commission has approved a 32 seniti increase in electricity tariffs, the Government will absorb the full impact of the rise, ensuring consumers do not bear the burden in their power bills.
The move forms part of a set of immediate measures aimed at easing pressure on families facing rising living costs.
“While there are signs of fuel supply risk, Tonga remains at ‘Green’ status, meaning overall supply is stable,” Lord Fakafanua said, while acknowledging the financial strain caused by global energy pressures.
Under the scheme, the Government will continue its existing lifeline tariff programme for vulnerable households, while extending support to all households nationwide.
By absorbing the tariff increase, the Government is effectively paying the additional cost that would otherwise have been passed on to consumers.
This intervention means households are unlikely to see a significant rise in their electricity bills despite the higher tariff rate.
Relief Amid Rising Costs
The electricity subsidy is the centrepiece of a wider support package designed to cushion the impact of the energy crisis and inflation on everyday life.
Other measures announced by the Government include a 3 percent Cost of Living Adjustment (COLA) for civil servants, supported by $5 million in the draft FY2027 Budget, as well as subsidies to offset fuel surcharges on domestic air and shipping services to help keep the cost of goods and travel down for outer island communities.
The package also provides a one-off $100 payment to beneficiaries of elderly and disability welfare schemes, while targeted support for businesses struggling with rising energy costs is currently being finalised.
The Government’s decision to absorb the electricity price increase reflects a balancing act between maintaining energy supply stability and protecting households from economic shocks.
With global fuel costs continuing to fluctuate, officials signalled that interventions such as subsidies may be necessary to sustain affordability while ensuring reliable energy access.
The Prime Minister said the measures are part of a broader effort to maintain economic stability and protect vulnerable communities, as Tonga navigates ongoing uncertainty in global energy markets.
