KOROR, Palau — The Palau Public Utilities Corporation (PPUC) has announced that government subsidies for residential power and water will end on April 1, 2025, due to the depletion of allocated funds.
“Effective April 1, 2025, the Lifeline Subsidy will no longer be available,” PPUC stated in a March 28 announcement. “Unfortunately, due to the exhaustion of the subsidy appropriated in accordance with RPPL 11-39, PPUC will resume application of the subsidies once additional funding is approved by the National Government.”
The subsidies, established under RPPL 11-39, provided $2.9 million in financial assistance for residential energy, water, and wastewater services through the Lifeline Subsidy Program.
Under the law, $960,000 was allocated to offset residential water and wastewater bills, reducing costs by $0.0067 per gallon of water and $0.0093 per gallon of wastewater. An additional $1.7 million was designated to subsidize diesel fuel costs, lowering electricity rates by $0.10 per kilowatt-hour (kWh) for the first 500 kWh used each month.
With the funds now exhausted, the subsidies ended on March 31. Customers are expected to see a sharp increase in their electricity and water bills, particularly as the subsidy’s expiration coincides with recent tariff hikes.