President Solih ratifies new Utility Regulatory Authority Act

President Ibrahim Mohamed Solih on Sunday ratified the 'Utility Regulatory Authority Act', establishing an official authority to oversee the management of public utility services across Maldives.

In addition to establishing the Utility Regulatory Authority, the newly ratified Act also details the mandate of the body, such as general guidelines, plans and procedures in the provision of utility services and waste management.

The establishment of the regulatory authority was mandated by the 'Water and Sewerage Act', which was ratified last August, becoming the first regulatory legislature regarding the sector implemented in Maldives.

Per the Act, the Utility Regulatory Authority will be tasked with licensing of utility companies as their registrar, as well as the enforcement body to investigate and penalize companies that violate laws related to water and sewerage.

The authority is mandated to formulate a structure to subsidize water and sewerage services in a decentralized manner and to empower local councils, involving councils in assigning rates for services provided by the institution.

The body must also adopt measures to protect an island's freshwater lens, while providing solutions for low-income households to afford utility services.

Furthermore, the authority is required to connect households to the water and sewerage grid, free of charge.

The President's Office stated that the objectives of Utility Regulatory Authority Act include provision of high quality utility services to all residents in Maldives in a "more affordable, sustainable and trustworthy manner which is efficient and also environment friendly".

The parliament passed the Act during the 20th sitting of its third session, on November 23. The PO noted that following ratification, the Utility Regulatory Authority Act has been published in the Government Gazette.

The disposal of untreated sewage and inadequate waste management, the latter concerning open burning of garbage and lack of recycling, are longstanding environmental issues still yet to be properly addressed by state authorities. The ratification of the new Act is a step forward by the incumbent administration, which came to power with a slew of environment-related pledges, including vows to find solutions for Maldives' sewerage and waste management issues.