The Utility Regulatory Authority (URA) has announced that the electricity price for August has decreased to 57.11 vatu per kilowatt hour, marking a 3% drop compared to the previous month.

According to URA, fluctuations in costs such as fuel and electricity supply to different islands including Santo, Ambae, Maewo, and Vanua Lava influence the price adjustments each month.

Regulatory Specialist Edmond Tambisari explained that URA reviews Vanuatu Utilities and Infrastructure’s (VUI) costs monthly. When fuel prices fall, electricity prices can also decrease. However, during dry seasons when hydro power production drops, supply costs rise, pushing prices back up.

“Fuel costs are the major factor. When fuel prices go down, we expect electricity prices to follow. But when hydro production decreases, as during dry seasons, the cost of generation rises. These different factors affect VUI’s prices and customers,” Tambisari said.

He added that price adjustments apply not only to Luganville but also to the four other areas VUI serves — Maewo, Ambae, Vanua Lava, and Santo. In these islands, small households benefit from a cross-subsidy system where large businesses pay slightly more to help keep prices lower for smaller consumers.

“During price reductions like this, small customers may not notice much difference because they already pay a subsidized lower rate. In contrast, business customers, who pay higher bills, will see the reductions more clearly month to month,” Tambisari explained.

URA also reminded customers to carefully check their invoice periods, as some bills may cover two months (e.g., July and August), which can cause confusion about the price paid.