State Electric Company (STELCO) Managing Director Ahmed Shareef assured 30-50 percent reduction on electricity bills once power band is changed to a flat rate.
President Ibrahim Mohamed Solih earlier announced his administration's decision to place a flat rate on electricity bills regardless of consumption. The change will be effective nationwide.
Speaking about this, Shareef said that the most common customer complaint was the increase in electricity bills during the hot season. He added that this issue would be addressed with the flat-rate pricing decision.
Shareef further noted that seven bands were allocated for residences previously, which increased depending on electricity usage resulting in surged bills.
"The president has announced a flat rate, which will reduce the bills by 30-50 percent," Shareef said.
Shareef said that president Solih's policy change would significantly benefit consumers by simplifying the pricing structure.
"This is a historic decision made by the government. No one in the past has made such a significant decision," Shareef said.
He said that STELCO was currently in discussions with the Utility Regulatory Authority to implement a fixed rate on electricity usage.
The first significant change to electricity tariff rates was back in 2009, prior to which electricity rates were based on three bands.
The government in 2009 changed electricity rates to seven bands after which the rates were discounted first in 2016 and then in 2019. Although the rates for the atolls were the same as Greater Malé region, the tariff did not observe an overall change.