The Government will not renew its concession contract with UNELCO for electricity services on Tanna and Malekula.
Prime Minister Bob Loughman confirmed yesterday that the decision was made during the Council of Ministers (CoM) meeting last Thursday.
People of Malekula and Tanna were notified through public notices that UNELCO would terminate its contract on the two islands by midnight yesterday.
This was confirmed by the PM yesterday.
The government through PM Loughman then announced yesterday afternoon that an interim arrangement has been sought to ensure that the electricity services continue. Given that, the head of the government assured the people on Tanna and Malekula that electricity services are not going to be affected but, would continue as normal after midnight.
The authorities are also considering a long term arrangement to ensure sustainability and development of electricity supply in the two islands concerned.
According to Loughman, despite discussions and negotiations between the government and UNELCO, there had been no consensus for a way forward between the two parties.