“Still a lot of dirty laundry in EPC we’re trying to clean” says Minister

By LAGI KERESOMA/

Apia, Samoa – 25 January 2024: The Minister for the Electric Power Corporation (EPC) Olo Fiti Vaai has confirmed that there has been no increase in the cost of electricity per unit.

The Minister corrected the statement by the Falelatai and Samatau Member of Parliament, Tologata Tile Tuimalealiifano that the cost of electricity had gone up in the past two years, impacting on the cost of living.

Olo explained that when the FAST Government took office in July 2021, they put in place a stimulus package of 20% reduction on the cost of electricity for businesses, Government ministries and domestic households for two years.

“After two years, the Government decided to remove the 20% stimulus package from businesses and Government ministries, but not domestic households who still benefit from it to date,” said Olo.

He also explained that despite the removal of the 20% stimulus package from businesses, the business owners are still benefiting as the cost of electricity at their homes remains under the stimulus package.

EPC has been in debt long before the FAST Government
Tologata is a former Chief Executive Officer for EPC before he came through in the 2021 general elections pointed out that EPC is broke as it is paying $24 million for loans they took out for development. “So where is EPC supposed to get the money to pay its loans if it’s broke?” he asked.

In response, the Minister said EPC has been at a loss at the time Tologata was the Chief Executive Officer.

One of the examples he pointed out that contributed to the loss was the Sales Agreement with one of the private solar companies selling electricity to EPC.

Olo told parliament that for almost 10 years, EPC has been buying electricity from this company for around 99 cents then EPC sells it to the public for 35 cents a unit.

“That’s one major loss through these deals,” said Olo.

The other reason he named was EPC’s lack of preparation to secure generators of its own rather than relying on hired generators making money for overseas owners for almost 10 years.

“Paying the hired generator was another loss for EPC,” he said.

He confirmed that Government has now secured 4 generators which are already on island and one will replace the old generator in Savaii.

Member of Parliament for Falelatai & Samatau, Tologata Tile Tuimalealiifano

Clarification of the $60 million savings  
Tologata informed Parliament that when he left EPC, the Corporation had almost $60 million accumulated profit.

He said to date, that money is gone.

The Minister reminded Tologata that the money he referred to was the Corporations insurance fund which was $35 million when he took office and not $60 million.

“Government used some of the money from that fund during the COVID-19 pandemic and have already been recovered,” said Olo.

The reason he said was because the Government then did not pay EPC’s tax returns.

“We have started paying EPC $23 million as they have applied for payment so they could implement some of their work, and that is the EPC status now” said Olo.

He said there were many more issues that needed to be “ironed out” within EPC and there is still “a lot of dirty laundry we are trying to wash,” said the Minister.

Outside Parliament, Olo said that he had “pulled the handbreak” on the controversial Smart Meters project that received many complaints from the public for the lack of transparency of the system.

“There’s over $10m worth of equipment for the Smart Meter project which we are looking at modifying for use in the prepaid Cash Power system,” said the Minister.