STELCO prepares electricity bills for May at reduced tariff rates

State Electric Company (STELCO) has announced that electricity bills for the month of May have been prepared at newly reduced domestic tariff rates.

The move follows a directive from President Dr Mohamed Muizzu to cut electricity costs for ordinary households.

President Muizzu issued the order on May 30, instructing both STELCO and Fenaka Corporation to implement a reduction in the domestic category electricity tariff, effective from June 1, 2025.

However, STELCO has stated that the new, lower rates have already been applied to May’s billing cycle.

"This change will reduce the cost of paying electricity bills," STELCO said in an official statement, confirming that all future bills will also reflect the reduced rates.

President Muizzu shared the updated tariff structure on social media platform X, outlining the reduction across various usage bands. The revised rates are as follows:

- Band 0-100: Reduced from MVR 1.50 to MVR 1.25

- Band 101-200: Reduced from MVR 1.70 to MVR 1.50

- Band 201-300: Reduced from MVR 2.15 to MVR 1.50

- Band 301-400: Reduced from MVR 2.50 to MVR 1.50

- Band 401-500: Reduced from MVR 2.95 to MVR 2.66

- Band 501-600: Reduced from MVR 3.55 to MVR 3.20

- Band 601+: Reduced from MVR 4.25 to MVR 3.83

Experts have said that the seven-tier tariff structure is a contributing factor to high electricity bills in Maldives, particularly for domestic consumers. They believe the reduction in rates across all bands will lead to meaningful savings for households.

Maldives first introduced the seven-band system in 2009, shifting from a previous three-band model. While there were discounts introduced in 2016 and 2019, the overall tariff structure remained largely unchanged until now.

Electricity tariffs in Maldives are calculated based on usage bands, designed to ensure that lower-income households benefit from lower electricity costs.