Projects of Policy and Regulation Sector

Energy Tariff and Regulation Support to Vanuatu's Utilities Regulatory Authority

Organization: DHInfrastructure


The Asian Development Bank (ADB) wanted to support Vanuatu's Utilities Regulatory Authority (URA) to improve energy tariff and regulation policy planning by harmonizing tariffs and regulations with country national energy targets and objectives and developing capacity at URA for promoting private sector participation in the energy sector.

Service Provided

DHInfrastructure reviewed the legal and regulatory framework for Vanuatu's energy sector, prepared new tariff petition processes and procedures, conducted a cost-of-service study, built a tariff model and conducted scenario and sensitivity analysis on the results, reviewed cross-subsidies, and assessed Government subsidy mechanisms. We also provided capacity-building support to URA related to strategic planning, organizational performance, and annual action plan preparation. We conducted training on appraising tariff petitions, auditing regulatory assets base and regulated assets, and appraising utilities' investment plans and their impact on grid and generation performance. Finally, we updated electricity regulatory reporting requirements based on URA experience and developed a uniform system of accounts for regulated utility services.