Fenaka Corporation has also hiked its electricity fuel surcharge to 27 laari (MVR 0.27) per unit of electricity over the increase in diesel price to MVR 8.91 per litre.
The main supplier of electricity in atoll islands, Fenaka’s development was heralded by State Electric Company (STELCO)’s raise of its surcharge to 27 laari which came into effect December 9. However, Fenaka is yet to announce a date to implement its amendment to the fuel surcharge.
The company’s Managing Director Ahmed Shareef stated on Thursday that they raised the electricity tariff due to increasing price of diesel, which is sold to the corporation by State Trading Organisation (STO). If the diesel rate per litre exceeds MVR 8, Fenaka Corporation is also sanctioned by the energy authority to levy three laari from every additional 10 laari.
“We’re discussing with STO on how to bring down electricity rates. We’ll announce details after it’s been settled,” said Shareef.
Statistics show that Fenaka spends MVR 60 million per month on fuel to generate electricity in 152 islands across the archipelago.
With the new development, a household that uses 500 units of electricity per month will have to pay a surcharge of MVR 135.
The government had reversed the tariff hike for households in January in the wake of a public outcry. The president had vowed then to further lower the electricity rates as the tariffs were still considered too high. However, there have been no slashes in electricity rates ever since.