Flat rate to replace band-based tariffs for electricity bills
It is unclear when the bill will be based on a flat rate instead of bands.
By
Ahmed Sadhoof Moosa
President Ibrahim Mohamed Solih on Thursday announced his decision to abolish the bands used in calculating electricity bills from all households of the general public and introduce a flat rate.
The President made the announcement while addressing a rally at the MDP's Huvadhoo party camp on Maaveyo Magu campaigning for the second round of the presidential election to be held on September 30.
The President said that the people do not have money to spend after paying water, electricity bills and rent. Therefore, in order to find a solution, he has found a way to reduce the electricity bill, he said.
“We are deciding today to charge a flat rate for every household,” he said.
The President said that due to this change, the proportion of electricity bills will remain the same no matter how much electricity is used.
However, the President did not say what the flat rate was after the abolition of the bands. It is unclear when the bill will be based on the rate.
STELCO, the state-owned electricity provider in the Male area, now bills by categorising electricity consumption and dividing it into bands. So far, the electricity billing has been:
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For the first 100 units - MVR 1.50 per unit
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Between 101 and 200 units - MVR 1.70 per unit
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201 to 300 units - MVR 2.15 per unit
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Between 301 and 400 units - MVR 2.50 per unit
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400 to 500 units - MVR 2.95 per unit
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501 to 600 units - MVR 3.55 per unit
With the decision announced by the President, these bands will be abolished.
