Customers to cover streetlight costs as UNELCO takes over operations

December 29, 2025 10:12 pm | Posted in Business News | Share now TwitterFacebook

By Anita Roberts.

UNELCO will begin charging customers in Port Vila and Efate less than VT1 per month for operating and managing streetlights, as the company takes over responsibility from the Port Vila City Council (PVCC).

Prime Minister (PM) Jotham Napat, Minister for Energy Ralph Regenvanu, and UNELCO General Manager (GM) Frederic Petit signed an addendum and a management contract yesterday, authorising UNELCO to take over.

Starting on Thursday, the Vanuatu Government will take over ownership of streetlights in the Port Vila/Efate concession. UNELCO will repair up to 250 streetlights and install up to 100 new ones annually.

Customers will notice a new line item appearing on their electricity bills for streetlights. The surcharge will be calculated quarterly, with the first quarter set at a fixed rate of VT0.49 per kWh.

UNELCO will remit the proceeds quarterly to the streetlighting service provider on behalf of the government.

The arrangement relieves PVCC, which has struggled to pay around VT500,000 in monthly electricity bills since 2011, while also improving safety for both residents and visitors.

Streetlight repairs are often delayed or not carried out when PVCC fails to pay the bill due to financial challenges, but Lady Mayor Jenny Regenvanu believes the new arrangement will ensure repairs are prioritised.

The mayor said the arrangement will improve safety, as residents have complained about the lack of street lighting over the past year.

Of the more than 200 streetlights in Port Vila, only a few are functioning. According to Minister Regenvanu, the arrangement does not cover existing streetlights.

“This agreement puts a clear and sustainable system in place to maintain and expand streetlighting in Port Vila and Efate,” he said.

“It strengthens an essential service while keeping the approach transparent for customers. It will enable streetlights in Port Vila to be repaired and become operational within the next six months.”

He said the arrangement will also cover the operation of additional government-provided solar streetlights, including a secured grant of 250 new solar streetlights to be integrated into the network.

Streetlighting in Port Vila has been managed under several arrangements over the past decade. A 2011 PVCC–UNELCO contract supported upgrades and maintenance, but delivery became difficult as PVCC faced budget constraints.

In 2014, PVCC, the Utilities Regulatory Authority (URA), and UNELCO agreed to an interim approach that maintained services by recovering costs through the general electricity tariff, pending a tariff review. With the review delayed, the arrangement ended by 2019, and repairs have since been carried out largely on an ad hoc, funding-independent basis.

PM Napat thanked UNELCO for partnering with the government to address safety, a long-time concern for Port Vila residents. UNELCO GM Petit also acknowledged the government for its trust and collaboration.