Parliament is revisiting the Electricity Supply Act for a second amendment as the Government moves to reform Vanuatu’s energy sector.

The proposed changes aim to transfer responsibility for the Electricity Supply Act under the Utilities Regulatory Authority (URA), while also opening opportunities for independent power producers to supply electricity directly into the national grid.

Minister of Energy Ralph Regenvanu told Parliament that Vanuatu currently does not have a legal framework that allows independent producers to establish operations and sell electricity directly into the grid system.

Prime Minister Jotham Napat spoke in support of the amendment, saying the reform could help reduce electricity costs for the country.

He used Parliament House as an example of how independent solar power systems are already helping reduce expenses.

“I will use this Honourable House as an example. The system we are using now is based on solar energy and when we negotiated the power purchase agreement, the excess electricity generated from the solar system here helped cancel out annual costs of about 12 million vatu,” Mr Napat said.

The Prime Minister said the Government already recognises the importance of allowing independent power producers into the market.

“Once we start allowing independent power producers to generate electricity and send it into the grid, it will definitely help force costs down,” he said.

Mr Napat added that the reform would help Vanuatu capitalise on renewable energy opportunities while reducing some of the high electricity costs currently faced by consumers.

He described the amendment bill as an important reform for the future of the country’s energy sector and confirmed his full support for the proposal.