The Cook Islands Chamber of Commerce is urging businesses struggling with high electricity costs in Rarotonga to engage with Te Aponga Uira (TAU) to avoid disconnection while also encouraging for a proactive approach from the electricity provider.

TAU recently confirmed that it had disconnected power for several customers with long-standing debts exceeding $10,000.

The company stated that these disconnections were a last resort after repeated attempts to recover payments and offer repayment plans.

Chamber director Steve Anderson said that while all businesses were feeling the financial strain of high power tariffs, those in arrears should act quickly to negotiate a payment plan.

Despite concerns over disconnections, Anderson said the Chamber was not yet aware of any businesses that had been cut off but would be available to provide support if needed.

“We would encourage any business finding itself in arrears with their power account to contact TAU as soon as possible to negotiate a time payment plan, to ensure they don’t get disconnected,” Anderson told Cook Islands News.

TAU is the sole electricity provider in Rarotonga and according to Anderson, the state-owned enterprise has a responsibility to balance its need for revenue collection with ensuring businesses remain operational.

“Businesses need electricity to operate, and disconnection kills their earning capacity.”

Anderson said they would encourage a proactive approach from both sides

The Chamber has long advocated for pre-paid electricity meters as an alternative to disconnection for businesses facing credit issues.

Anderson noted that this system worked well in other sectors, such as mobile phone services, to help customers manage their costs.

The rising cost of power remains a major concern for businesses, Anderson said, describing electricity as “the second largest outgoing after payroll for many”.

While electricity in the Pa Enua is generally cheaper due to subsidies and a higher reliance on solar energy, businesses in Rarotonga face significantly higher tariffs.

Anderson said TAU’s restrictions on new net-metered solar installations further limit businesses’ options.

“Te Aponga's current prohibition on new net-metered solar installations limits consumers’ choices, and the new solar feed-in tariff of 25c/unit (then marked up by TAU to 82c/unit for resale) is not a viable option for most businesses,” he said.

In a statement this week, TAU chief executive officer Lesley Katoa said that the company could no longer afford to provide free electricity to non-paying customers when others continued to pay their bills.

“If we do not disconnect customers who aren’t paying for electricity, we fail to do the right thing for the future of Rarotonga’s electricity grid,” Katoa said.

TAU had warned customers in July 2024 that disconnections would begin from October 23, 2024, for those with overdue balances of more than 90 days and no active payment plan.