Utility Billing and payment Rules

The Utilities Regulatory Authority (URA) has sets out the Final Decision and Commission Order issuing the Utility Billing and Payment Rules for Water and Electricity Services URA Case S-0016-14. This Commission Order is the formal order to utilities to carry out the necessary actions to implement the provisions described herein.

VUI Electricity Tariff Adjustment decrease by 10.44%
 
The Utilities Regulatory Authority (URA) Commission has issued an order to the Vanuatu Utilities and Infrastructure Limited (VUI), to reduce it's currently applied tariff of 40.52 Vatu/kWh to 36.29 Vaty/kWh. This is an average price reduction of 10.44%.

VUI Electricity Tariff Adjustment

URA received an application on 28th November 2013 for a tariff reduction for electricity services in Luganville from the operator, VUI. The application requested a tariff reduction of the base price of 3.46 vatu from the current level of 54.76, resulting in a new base price of 51.30 vatu. VUI indicates that the rate reduction is a result of cost saving due to an improvement in the performance of the Sarakata hydro-power plant.

The URA commission is pleased to issue Final Decision and Order for VUI tariff adjustment for electricity services in Luganville Case - U-001-15. This represents 14% price reduction from December 2014, resulting in a new base price of 40.25 VT/kWh.

PDF Preliminary Decision January 2014

PDF Final Decision March 2014

PDF Final Decision and Commission Order June 2015

Feed in Tariff and Net Metering
 
The Feed-in Program implements a limited solar feed-in program in UNELCO service area in Port Vila. The program allows domestic and small commercial customers to reduce their electricity bills by generating their own solar energy. Customers can still use grid power at the normal retail tariffs to supplement their electricity use when solar power is unavailable. Any excess solar power generated can be provided to the network and will further offset electricity bills. The program contains limits on the size of individual installations, and also the total installed capacity. A customer may install solar panels equivalent to the subscribed kVA of their current connection, up to 20kWp. The total program is limited to 500kWp, with approximately 50-70 domestic customers, 10 commercial customers, and 3 High voltage customers. Application forms will be available on the website and UNELCO’s office from 15th September 2014, and can be submitted from 1st October 2014.

Business Development Incentive Tariff for new businesses
 
The Utilities Regulatory Authority (URA) has proposed a new reduced electricity tariff for new large business customers in Port Vila. Under this proposal, new customers or current customers who want to expand will be eligible for a discount of up to 35% intheir electricity bills for new consumption. The Final Decision and Order implement has been published, this program offers to lower electricity tariff for business customers wishing to expand their existing business and for new business location in Port Vila.

Independent Power Producers and Power Purchase Agreement

The URA Commission has  issued a Preliminary Guidelines on the independent power producers (IPPs) and power purchase agreement (PPAs). These Preliminary Guidelines are being provided to all interested person in the matter of developing regulatory guidelines.

PDF Preliminary Guidelines - June 2014

Port Vila Street Lighting

In the matter of UNELCO requesting Commission approval to transfer operations and maintenance of Street Lighting service in Port Vila from the Municipality to Unelco, the Commission finds that the proposal submitted by Unelco is appropriate and in the public interest. Commission believes that the proper maintenance and provision of street lighting is an essential part of civic amenities to which Port Vila citizens are entitled. Well-lit and functioning SL service promotes public safety, security and commerce in the area. Further Commission finds that Unelco may request to include the cost for SL operations, maintenance and energy supply as part of their operating expenses in the next rate review as discussed in the Order. During the interim period until the next rate review, the SL related costs incurred by Unelco may be accrued and recorded in a regulatory asset account recoverable in the rate case.

PDF Commission Order

ELECTRICITY TARIFF REVIEW

The Government’s concern about the high cost of electricity has led to the Authority undertaking a full review of the level and structure of tariffs for all concession areas. Under Section 2 paragraph 27 of the Luganville concession agreement and under Section 7.5 of the Port Vila concession agreement, and at the request of the Government, the electricity tariff was reviewed as more than five years had lapsed since the previous review. This tariff review also provided guidance to the Government for negotiating the level and structure of consumer tariffs and formulating a different process for tariff-setting for the expiring (end 2010) concession in Luganville. In May 2010, the Authority completed its tariff review and recommended a 6.8% reduction of the electricity tariff, which is applied in Luganville. The decision was disputed for the three other concessions and a panel of arbitration was set up to find a compromise. In May 2011, the tariff was reduced by 4.7% on average for the, Port Vila, Malekula and Tanna concessions. This was the first ever electricity price reduction and a great achievement to the benefit of all electricity customers in Vanuatu.  In addition, the Authority has put in place a transparent regulatory framework structure for tariff setting and it will review the price of electricity every five years.

PDF Framework Paper April 2009

PDF Tariff Application Report March 2010

PDF Position Paper March 2010

PDF Gilead Sofosbuvir Price 2010

PDF Final Decision May 2010

PDF Arbitration Award Letter April 2011

LUGANVILLE ELECTRICITY TARIFF SETTING

UNELCO started operating the power supply concession in Luganville on 23 January 1990. The 20-year concession expired on 31 December, 2010. The tender process ended on 19 November with the appointment of Pernix Group, Inc. Its subsidiary Vanuatu Utilities and Infrastructure Limited (VUI) started operating the concession on 1 January 2011.The Act empowers the Authority to set the maximum level of tariff for the Luganville concession.

PDF Framework Paper July 2010

PDF Final Determination Stage 1 August 2010

 

PDF Draft Determination Stage 2 June 2011


     

   


 

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