The Ministry of Finance has disclosed that there is currently no policy to revise electricity tariff rates. According to Deputy Minister Ahmed Saeed Musthafa, instead of adjusting the rates, the government’s current objective is to minimize electricity production costs. This strategy includes expanding the integration of renewable energy and upgrading the efficiency of power generators.
As electricity in the Maldives is currently produced at a loss, the state provides significant subsidies to sustain the service. Since any reduction in tariff rates would further escalate the state’s financial burden, the government is prioritizing cost reductions on the generation side and strengthening the operational efficiency of service providers, namely Fenaka and STELCO. Furthermore, as part of efforts to streamline administrative management, a decision has been made to transfer the electricity services of certain islands to STELCO.
