The Utilities Regulatory Authority (the Authority) has completed its 2026 Annual Tariff Adjustment for Vanuatu Utilities and Infrastructure (VUI) Ltd, resulting in a reduction in electricity tariff for VUI customers effective May 2026.
Following its assessment, the Authority has approved a 2% decrease in the electricity tariff, reducing the rate from 57.11 Vt/kWh to 55.89 Vt/kWh. This adjustment is expected to lower monthly electricity bills for VUI customers and support the Authority’s ongoing efforts in ensuring electricity service remains affordable.
In 2024, the Authority approved a three-year uniform tariff for VUI, which will remain in effect until the first quarter of 2027. This uniform tariff is subject to both monthly and annual adjustments. Monthly adjustments reflect changes in fuel costs and the proportion of renewable energy used in electricity generation.
Annual adjustments, however, involve a broader review of factors affecting the utility’s financial and operational performance. These factors include, among others, annual changes to investment levels, inflation-related impacts on the cost of producing and supplying electricity, and variations in electricity demand, all of which influence how efficiently costs are shared among customers.
As part of the 2026 annual adjustment exercise conducted in April, the Authority carried out financial audit and technical inspection of VUI’s investments for the 2025 financial year. The assessment delivered positive results, confirming total investments of VT 151 million.
Approximately 99% of these investments were directed toward infrastructure development in Santo, demonstrating a strong focus on improving reliability and access to electricity services in the northern part of the country. The remaining 1% supported outer island concessions, benefiting communities in Vanua Lava and Ambae.
The Authority also acknowledges VUI’s continued efforts to expand access to electricity, noting 203 subsidised new customer connections during the year ending 31 December 2025. These investments play a vital role in enhancing electricity reliability, expanding access, and supporting service improvements, particularly in rural and remote areas.
The annual tariff adjustment process remains an important regulatory mechanism to ensure electricity tariffs reflect cost while promoting transparency, accountability, and long-term sustainability within the electricity sector.
The Authority will continue to work closely with VUI Ltd to address electricity customer concerns and support the Government’s policy objectives under the National Sustainable Development Plan (NSDP) and the National Energy Road Map (NERM).
For more information on the electricity tariff adjustment, please visit www.ura.gov.vu