Solomon Power and Solomon Water announce tariff changes for 2025, affecting electricity and water prices for households and businesses.
Starting on January 1, 2025, both Solomon Power and Solomon Water will implement price changes that will impact households and businesses across the country.
Electricity Tariff Reductions
In a positive development for electricity consumers, Solomon Power has announced a reduction of 8.3% in the Non-Fuel Charge component of the electricity tariff, in line with the Solomon Islands Government’s policy to reduce electricity tariffs by 25% over the next three years. The reduction will make electricity more affordable for users, especially in residential areas.
However, the Fuel Charge—which is directly tied to fluctuations in the international fuel market—remains unchanged. This means that while the non-fuel portion of the bill has gone down, fuel costs, which make up a significant portion of the total electricity bill, will continue to influence pricing. The fuel charge is currently set at $2.69 per kWh for all users, including domestic, commercial, and industrial customers.
Solomon Power is also investing in renewable energy to reduce dependence on imported fuel. The company’s ongoing projects, such as converting provincial outstations to solar hybrid systems and expanding solar farms and the Tina River Hydro Project, are expected to reduce future reliance on expensive fuel.
Water Tariff Increases
For Solomon Water, commercial users will see higher charges starting in 2025. For businesses consuming up to 15kL, the new charge will rise to $40.73 per kL, a significant increase from $38.03 in 2024. For consumption above 30kL, businesses will now pay $50.85 per kL, up from $47.48 in the previous year.
For domestic users, the changes are as follows:
0 to 15kL: $10.43 per kL (up from $9.71 in 2024)
15 to 30kL: $15.49 per kL (up from $14.44 in 2024)
Greater than 30kL: $18.01 per kL (up from $16.80 in 2024)
These increases, though modest for households, are mainly driven by higher costs associated with fuel and electricity used in the production and distribution of water.
