Government to bring changes to electricity charges

The government has decided to revoke the subsidy for electricity and bring changes to electricity charges across the country.

According to the new structure established by the Ministry of Environment and Energy, State Electric Company (STELCO) and FENAKA Corporation, electricity would be charged in Malé under a specific rate. And STELCO would be charging for electricity in the atolls under a different rate. There would be no difference in cost per unit among the islands.

As the rates of STELCO stands, they charge lower if the cost is under 400 units in Malé City and the atolls. But if it is above 400 units, it would be somewhat expensive.

The Malé area tariff from STELCO has been MVR 2.95 for 301-400 units. But the changes would bring the tariff to MVR 2.70. And the tariff for 201-300 units has been brought down from MVR 2.50 to MVR 2.35. The tariff for 101-200 units have been brought down from MVR 2.50 to MVR 2.20 while the tariff for 0-100 units would be brought down to MVR 2.10 as opposed to the previous tariff of MVR 2.25.

The price for 400 units and above has been raised under the new change. While 401-500 units have been raised to MVR 3.35 while 501-600 units has been set at MVR 3.95. And 600 units and above has been set at MVR 4.25.These three categories have an increment of MVR 0.40.

The tariff for 400 units and above would be raised in the atolls as well. And so the tariff for 401-600 utis is MVR 5.50.

Under the new changes, FENAKA Corporation would be billing all of their domestic customers under the same rate. No changes would be brought to business customers. And if the usage is over 400 units, an the bill would have an increment of about MVR 80 - 135 according to the Managing Director of FENAKA, Nimal.

If the price of Diesel liter is not above MVR 10.75, customers under the 400 unit limit do not have to pay a fuel surcharge. If the usage is between 500-600 units, the bill would have an increment between MVR 192.50 - 260.

Starting from 1 February, FENAKA would be charging MVR 3.0 for 0-100 unit range and while MVR 3.30 would be charged for 101-200 units, MVR 3.40 would be charged for 201-300 units along with MVR 3.50 for 301-400 and MVR 5.50 for 400 units and above.

As the subsidy has been cancelled with the new changes to electricity charges, the monthly electricity bills would have an increment between MVR 80-135. The government says that the change would lighten the load on the state budget.