Vanuatu Business Review » URA consults on VUI Limited’s preliminary electricity tariff


URA consults on VUI Limited’s preliminary electricity tariff

The Utilities Regulatory Authority (the Authority) has issued its preliminary tariff determination of 45.49 Vatu/kWh for the Vanuatu Utilities & Infrastructure (VUI) Limited to apply to its electricity customers in Santo. This is an average price increase of 18.09% to VUI’s currently applied base tariff of 38.52 Vatu/kWh.

VUI Limited is a fully-fledged concessionaire providing electricity services in accordance to its Concession Deed in the islands of Santo, Ambae, Vanua Lava and Maewo in the northern part of Vanuatu. VUI had lodged its tariff application file and request to the Authority on the 24th of August 2020. Since then a rigorous tariff review process eventuated where data and information exchanges took place between the regulated utility and the Authority. This is a first tariff determination for VUI Limited as a Concessionaire.

The Authority’s 45.49 Vatu/kWh, preliminary tariff determination for VUI Limited, is:

• Determined for a 3-year tariff period;

• To be applied by VUI Limited to only VUI’s Santo electricity customers;

• Allows a return on investments to the regulated utility for investments made during period from June 2019 to December 2020; and

• Inclusive (partial cross-subsidization) of VUI’s cost of servicing outer service areas by VUI’s Santo electricity customers; customer contributions to the National Green Energy Fund (NGEF); purchasing of solar power from Independent Power Producers (IPP’s).

Details of the Authority’s preliminary tariff determination is outlined in ‘URA’s Preliminary Decision and Notice of Request for Comments’ document which is available to the public in the Authority’s website (www.ura.gov.vu) and at the URA Main Office in Port Vila town and Northern Branch Office in Luganville town.

The public is encouraged to provide its feedback on the Authority’s preliminary tariff determination of 45.49 Vatu/kWh and also to attend consultation meetings to be held throughout Santo from Monday, 18th of October 2021 to Friday 22nd of October 2021.

Public consultation(s) in Vila, Efate, will be held in the week of Monday 25th October 2021.

Written submission(s) from the public is accepted until close of business on Friday 29th of October 2021.



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