The Parliamentary Committee on State-Owned Enterprises (SOEs) has approved the equalisation of electricity tariff rates for different business categories in Male' City and the atolls by June 2023.
Businesses are expressing concern about the increase in electricity prices supplied to them in the atolls. The complaints made by businesses include the high cost of running the business, the high cost of electricity and taxes, and low income. In addition, the price of commercial electricity band ranges from USD0.24 to USD0.37 for 300 units to 10,000 units in Male'. compared to the USD0.39 for over 300 units charged in atolls.
The committee met with the Ministry of Finance, Ministry of Environment, Climate Change and Technology, State Electric Company Limited (STELCO), Fenaka Corporation Limited, Male' Water and Sewerage Company (MWSC), and State Trading Organisation (STO) before making the decision. The stakeholders stated USD6 million needs to be added to their operating expenses if the electricity prices are changed, adding it is a financial burden. The companies also noted that the budget for next year does not include these expenses and will be a challenge to change the prices.
The committee, however, asked the stakeholders to complete the equalisation of electricity tariff rates for different categories of businesses in Male' and the atolls by June 2023.