The Utilities Regulatory Authority (URA) advises the public that the Government fuel subsidy for the electricity sector, approved under Council of Ministers (CoM) Decision No. 18 of 2026, has now ended following the full depletion of the VT 192 million Government Subsidy Fund rolled out over the months from June to September 2026.

The subsidy was funded by the Government through the Ministry of Finance and Economic Management (MFEM) and implemented by URA in collaboration with the Ministry of Climate Change Adaptation, Meteorology, Geo-Hazards, Environment, Energy and Disaster Management (MoCC). It was made available to regulated electricity concessionaires, including UNELCO Engie, VUI Ltd, and VANPAWA, to help cushion customers from the effects of elevated fuel prices on electricity tariffs.

The subsidy helped to offset higher electricity generation costs caused by increased diesel fuel prices, particularly for utilities that rely heavily on diesel generation. As the available subsidy funds have now been fully disbursed, fuel costs will no longer be subsidized under this Government support arrangement.

Under the current tariff framework, monthly electricity base tariffs are influenced by each utility's generation mix and fuel costs. With the depletion of the subsidy, changes in fuel prices will be reflected more directly in electricity tariff adjustments.

URA acknowledges the Government's support through the subsidy and notes that all funds allocated for this purpose have now been exhausted. The conclusion of the subsidy means there will be no further rollout under the current allocation.

Promoting affordable, reliable, and sustainable electricity services remains a key function of the URA. URA will continue to monitor regulated electricity services and tariff adjustments in accordance with the approved regulatory framework.

URA strongly encourages all electricity users to use electricity efficiently and conserve energy wherever possible. Simple actions such as switching off unused lights and appliances, using energy-efficient equipment, managing air-conditioning use, and reducing unnecessary consumption can help households, businesses, and communities manage electricity costs.

For more information on monthly tariff adjustments including the Government subsidy and information on regulated electricity services, URA encourages the public to visit the URA website and official Facebook page.