Tonga Independent News

Sunday 12, May 2024

Tonga Power Chairman welcomes Royal Commission

One of the major issues currently in discussion and has been for a while now, is the public outcry due to the continuing increase in the cost of electricity.

The issue came up shortly after the eruption of the Tonga Hunga and Tonga Ha’apai which covered Tonga in ash and causing extensive damage to homes, infrastructure, and disruption to the power network. As recovery work continues the cost of electricity continued to rise which is causing anger and frustration to an already disheartened  public.

Over the last few weeks , the issue has resurfaced , putting TPL under the spotlight. Only this time the public are now calling for investigation into Tonga’s largest corporation and Public Enterprise.

The public’s frustration with the ever-increasing cost of electricity has taken a new turn with the Chairman of the board of directors of Tonga Power Ltd (TPL), Tapu Panuve, expressing his disappointment in the senior management of his own organization.

Speaking to Tonga Independent , Acting CEO of TPL, Mr. Finau Moa, attributed the rising cost of electricity to the ongoing conflict in Ukraine which is driving the cost of oil up and affecting everyone, but failed to provide an explanation for the irregularities on power bills that have added to public frustration.

Calls for Royal Commission

Given the ongoing issues with prolonged power outages and the significant impact of electricity costs on 95% of the population, questions have been raised about the need for a Royal Commission into the operations of Tonga Power. When asked about this suggestion, Mr. Panuve expressed his support, stating that it was the best solution for all and that there were individuals within the organization who were opposed to transparency and were contributing to a toxic working environment.

Tonga Independent has contacted the CEO of the Ministry of Public Enterprises Mr. Sione Akauola on more than one occasion. Mr Akauola who reports directly to the Minister of Public Enterprises declined to be interviewed, however continued to direct our enquires to TPL’s Chairman and CEO.

According to section 3 of Tonga’s Royal Commissions Act, only the King can initiate a Royal Commission with the advice of the Prime Minister. The current Prime Minister, who also holds several other ministerial portfolios, including Minister of Police & Prisons, Minister of Education and Minister of HM Armed Forces, has yet to provide direction on this matter despite the King’s awareness of the situation at Tonga Power.

Tonga Independent has been advised from within TPL that an independent investigation by the Australian High Commission has revealed that the Smart Meter was functioning correctly, but it was TPL who was using incorrect averaging software. The report also suggested that TPL needed to increase the number of routers around the island for the Smart Meter to work properly, but the lack of skilled and qualified personal within TPL has proven to be a significant issue in addressing this technology and completing the necessary work.

TPL Decline

It is clear that a closer examination of Tonga Power’s operations is necessary to address this ongoing problem which began back in 2015 following the election of the new government of Akilisi Pohiva.

Since then, qualified directors and experienced management have been replaced with individuals who lack experience in power generation or possess no business management experience which has contributed to the organization’s decline.

Tonga Power, the country’s largest corporation and a Public Enterprise, was returned to government control in 2008 after public dissatisfaction with the previous owner Shoreline which was a private company. Shoreline’s management was highly criticised for their huge salaries which was blamed for the high electricity costs.

From 2008 to 2015, the organization performed well with good governance and experienced management, but this began to deteriorate in 2015, leading to the current situation.

As the public continues to struggle with the rising cost of electricity and prolonged power outages, the need for a Royal Commission into the operations of Tonga Power Ltd becomes increasingly urgent. The government must take immediate action to address the issues plaguing the organization and restore public confidence. Failure to do so will only lead to further frustration and hardship for the people of Tonga.

Sign up below

The best of Business news, in your inbox.