On 5 May 2026, the Utilities Regulatory Authority (URA) received several queries regarding industrial electricity tariffs, regional electricity pricing comparisons, and renewable energy solutions for large-scale cold storage facilities.
The Authority provides the following responses.
- Industrial or Manufacturing Electricity Tariff Category
The Port Vila electricity concession is operated by UNELCO under a concession contract. The base tariff is fixed over a five-year interval period but adjusted monthly through the Tariff Adjustment Formula (TAF) to reflect external factors such as fuel prices.
Electricity tariffs are structured by customer categories to ensure cost recovery and operational sustainability. This structure includes a cross-subsidy mechanism, which supports affordable lifeline tariffs for low-income users such as small domestic households.
Industrial and manufacturing entities typically fall under the High Voltage (HV) category due to their high energy demand. The current HV tariff includes:
- Variable charge: Tariff x 0.7 per kWh, and
- Fixed charge: Tariff x 25 per subscribed kVA,
- both adjusted monthly by the TAF.
The reduced variable rate reflects cross-subsidization, meaning HV users pay less than the full cost of supply, with remaining costs partly recovered through fixed charges and other customer categories.
Therefore, while no separate industrial tariff exists, the current structure effectively provides preferential pricing for high-consumption users. However, increased industrial demand may place additional burden on other consumers under this setup.
- Comparison with Regional Electricity Rates
Direct comparison of Port Vila’s electricity prices with those in other Pacific countries is challenging due to several factors:
- Port Vila relies on a cross-subsidy model without government subsidy, unlike some regional utilities.
- Cost structures differ significantly, particularly due to varying reliance on diesel generation and levels of infrastructure investment.
- Customer base size and composition affect cost distribution. In Port Vila, a high proportion of domestic lifeline customers increases reliance on cross-subsidisation.
- Limited regional data availability restricts comprehensive benchmarking.
The Authority, through its participation in the Office of the Pacific Energy Regulators Alliance, is working with regional partners to improve benchmarking and data sharing.
While benchmarking studies are being developed, Port Vila’s unique context means that any policy for preferential industrial tariffs must ensure long-term sustainability.
3. Renewable Energy for Cold Storage
The Authority is not aware of any dedicated renewable energy systems for large-scale cold storage facilities.
Self-generation is permitted under the Electricity Supply Act and falls into two categories:
- Off-grid systems, which operates independently of the main utility network, and
- Grid-tied systems, which remain connected to the grid and use it as a backup supply.
Grid-tied systems require prior consultation with UNELCO due to safety and system reliability considerations.
The above responses have been tailored to suit the context of the queries posed and should not be taken out of context.