President Dr Mohamed Muizzu has vowed to do everything possible to sustain the recently announced reduction in household electricity tariff rates.
Amid growing public concern over rising electricity bills, President Dr Muizzu, the day before had announced that the domestic category electricity tariff rate will be reduced from 1 June. The President had also directed the relevant authorities to take all necessary steps to ensure the sustainable implementation of the new rates.
Speaking to PSM about the electricity tariff cut, President Dr Muizzu said 19.3 percent of Fenaka Corporation Limited customers in the Atolls consume electricity below 100 bands and the price of these bands will be reduced from USD 0.09 to USD 0.08. A large percentage of the general public uses electricity between 101 and 400 bands and the price of these bands has been revised to USD 0.10, he said.
Noting that this is the first time in the history of the Maldives, a government has taken such a drastic decision, the President said the decision to reduce electricity tariffs was taken because he did not want the people to bear the brunt of the government’s energy policy.
"The primary purpose of a government is to make the lives of its people easier. So I have decided to provide affordable electricity to the people. The government will do whatever is necessary to maintain it,” he explained.
The President also said the government will invest heavily in renewable energy to achieve its target of converting 30 percent of Maldives energy to renewable sources by 2028, he said.
He also alluded to plans to strengthen and invest in the country’s main energy providers including Fenaka and State Electric Company Limited (STELCO) to maintain the electricity tariff cuts.
The changes in electricity tariff rates are as follows:
Band 0-100: USD 0.09 to USD 0.08
Band 101-200: USD 0.11 to USD 0.09
Band 201-300: USD 0.13 to USD 0.09
Band 301-400: USD 0.16 to USD 0.09
Band 401-500: USD 0.19 to USD 0.17
Band 501-600: USD 0.23 to USD 0.20
Bands above 600: USD 0.27 to USD 0.24