Discussions continue on capping electricity bill half way into Ramadan

Mar 26, 2024, 12:12 PM
Environment ministry meeting with utility companies. -- Photo: Environment ministry

Environment ministry meeting with utility companies. -- Photo: Environment ministry

Discussions on capping electricity and water bills at the normal monthly rates during Ramadan are still ongoing, Adhadhu understands.

Speaking in Baa Eydhafushi during a tour of the atolls before Ramadan began on March 11, President Dr. Mohamed Muizzu said bills would be capped during the fasting month.

The heads of the state utility companies have agreed to make arrangements to cap bills during Ramadan, Muizzu said at the time.

"Now I have made the request at Fenaka and STELCO. I have also requested at MWSC. The heads of these three companies have given me assurances," he said.

"Hopefully, water bill will be capped at the rate as in a normal month. No matter how high the load, we will not charge anything more from the electricity bill as well. That is also to give relief to the people."

Although heads of utility companies have agreed to this, reliable sources say the announcement regarding the capping has been delayed because the Environment Ministry and the companies have not reached an agreement on how to do this. The biggest issue is how companies can get compensation for financial losses.

When asked about the matter, an official of the Environment Ministry confirmed that Minister Thoriq Ibrahim had met the heads of the companies to discuss the matter. A post on the ministry's X account shows that the meeting was held on March 14.

The Environment Ministry's post said the meeting was held to discuss strategies to reduce electricity bills during the month of Ramadan.

One of the photos shows the meeting was held following Muizzu's remarks in Baa Eydhafushi. The photo shows a letter addressed to Utility Regulatory Authority Chief Executive Yazeed Ahmed. The letter requested the utility companies to cap bills at the rates of normal months as announced by the President.

While the government has decided to cap bills to give relief to the people, this year's Ramadan coincided with the warmest period of the year. Public complaints over high electricity bills are reported during this time each year.

As a result, capping bills during this time will be a loss for the companies although it brings relief to the people. The Utility Regulatory Authority Act requires the government to compensate for price changes ordered by the authority.

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