State Electric Company Limited (STELCO) has announced a significant reduction in household electricity bills, ranging from 30-50%. The announcement comes after President Ibrahim Mohamed Solih decided to change the pricing structure for electricity from banded prices to a flat rate.
Managing Director Ahmed Shareef disclosed that STELCO is actively working on establishing a fixed rate for electricity bills and is currently engaged in discussions with the Utility Regulatory Authority. He said that the proposed flat rate of USD0.09 per unit is expected to result in a reduction in electricity costs, with the aim of implementing the new billing system starting in January of the coming year.
STELCO currently implements a system with approximately seven billing bands for households, with increasing consumption leading to higher bills. It is also a source of frustration for many individuals, especially during the hot season.
The most significant change to electricity tariff rates in the Maldives took place in 2009. Since then, the government has introduced discounts on electricity rates and standardised electricity prices between the capital city and the islands in 2022.