MDP presents resolution over discrimination in commercial utility rates between Male’ and atolls

The main opposition Maldivian Democratic Party (MDP) presented a parliamentary resolution on Wednesday, expressing concern over discrimination in utility charges between small and medium enterprises based in Male’ and the atolls.

The resolution, submitted by South Hulhumale’ MP Dr. Ahmed Shamheed, said that access to electricity and clean water is a basic right for all Maldivian citizens, regardless of whether they live in the capital or outside.

Shamheed expressed concern over a huge difference in charges by state utility companies State Electric Company (STELCO), Fenaka Corporation and Male’ Water and Sewerage Company (MWSC) for businesses based in Male’ and the atolls.

He said that this has resulted in a huge financial burden for businesses operating in the atolls.

According to Shamheed, a link to water supply in Male’ is provided for MVR 3,187.84, while the charge for the same service in the atolls is MVR 5,000 – a price difference of 57 percent. He also said that water meter relocation service is provided in Male’ for MVR 850, while the service is provided in the atolls MVR 2,200 – which is higher by a staggering 159 percent.

He added that while the charge for exceeding daily water usage of 201 liters in Male’ is MVR 101.26, it is MVR 135 for the atolls.

Meanwhile, the rate for hourly electricity usage of 301-500 kilowatts is MVR 3.65 in Male’, but MVR 6 in the atolls.

Shamheed said that this level of discrimination in basic services such as water and electricity means that SMEs in the atolls, especially guesthouses, need to spend 40-70 percent higher on electricity and 35 percent higher on water.

He said that the discrimination in commercial utility rates between Male’ and atolls violates the right to protection from discrimination enshrined in the Constitution.

Shamheed said that the discrimination is forcing an unnecessary financial burden on SMEs based in atoll, and threatens the sustainability of such businesses, especially with local economies already weak.

He asked fellow parliamentarians for their opinion on the matter.