Tonga Power Limited has presented a cheque of$2 million pa’anga to the government as dividend declared for 2014-2015.
The cheque was presented by board chairman, Carl Sanft to the Minister for Public Enterprises, Poasi Tei during Tonga Power’s Annual General Meeting this week.
This is the highest dividend ever paid from Tonga Power Ltd to the Government since its operation, and an increase from June 2014 by 27 percent from $1.5 million pa’anga to $2 million pa’anga.
Over recent years, the company has also reduced its electricity tariff substantially.
Since July 2014 to June 2015, the electricity tariff for all of Tonga has decreased by about 13% (or 11.5 seniti), from 91.7 seniti per kWh to 80.1 seniti per kWh.
Today, the current electricity tariff is 78.68 seniti per kWh which came into effect on 1st December 2015.
Minister Tei expressed his appreciation on behalf of the Government to Tonga Power Limited for the dividend declared for year ending 30 June 2015. This is consistent with the Group’s long term value objective under its dividend policy to distribute solid profits to its shareholder, the Government of Tonga.”
He also thanked the Board of Directors, CEO and the management of Tonga Power Ltd for the dividend payment that was presented. This is a record dividend, the Minister commented.
The dividend was delivered in spite of the difficult time the company faced during the year by passing on a lower tariff rates to its customers whilst meeting the Government’s core purpose to reduce the tariff and Tonga’s vulnerability to oil price shocks, and achieve an increase in quality access to renewable energy services.
Minister Tei also thanked Tonga Power Ltd for the successful acquisition and sound management of the Tonga Gas Ltd and HomeGas Ltd businesses. Tonga Gas Limited and HomeGas Ltd are subsidiaries of Tonga Power Limited who paid a combined total of $200, 000 as a Dividend in its first year of operation, to Tonga Power Ltd during its Annual General Meeting last week.