The government of the Maldives announced Sunday that following a slash in fuel surcharge, electricity rates will drop by 10-15 percent from July onwards.
Speaking at a press conference, Minister of Environment and Energy Thoriq Ibrahim stated that the rates of electricity supplied to all islands and businesses via state utilities companies, State Electric Company (STELCO) and Fenaka Corporation, will decrease from this month.
“The changes will be implemented and seen in the [electricity] bills [this month],” said the minister, adding that the government’s plans to change electricity rates are not “just talk”.
According to the minister, the fuel surcharge is being lowered due to the recent drop in fuel duty to five percent. Following the change, the rate of fuel sold to STELCO and Fenaka has dropped to MVR 7.94. Fuel surcharge is charged only when diesel rates exceed MVR 8 per litre, with MVR 0.03 charged as surcharge for every additional MVR 0.10.
Minister Thoriq noted that slashing the fuel surcharge as such will result in “government utilities companies giving MVR 270 million of their yearly income to the people.” He vowed that the companies will increase their efficiency in future to further lower the rates.
The minister also assured that no changes will be made to tariffs and fuel surcharge bands despite lowering the rates.
STELCO and Fenaka are to release the details on the price drop over the next week.