Solomon Island Electricity Authority (SIEA) has about 23,750 customers. However, following domestic unrest, about 50 percent of private sector customers in Honiara were lost in 1999 and 2000, including many of the larger commercial consumers. In March 2001, the Government increased tariffs by 20 percent in an effort to boost the finances of SIEA. But, this increase was soon fully absorbed by fuel price rises. Other costs have increased with annual inflation running at about 15 percent. The SI currency has devalued about 50 percent against the US dollar since 2000. SIEA’s accounts have not been audited for several years. The World Bank is currently supporting the development of options for private power investment and a financial restructuring plan including a valuation of assets with PPIAF support [Back to top] |