Resolution submitted to Parliament over discrimination in billing electricity for Male’ and atolls

A resolution has been submitted to Parliament calling to eliminate discrimination in the billing rates and banding with regards to electricity services provided by State Electric Company Limited (STELCO) and Fenaka Corporation for businesses based in Male’ area and atolls.

The resolution was submitted at Tuesday’s parliamentary sitting by Thoddoo MP Hassan Shiyan. In his resolution, the parliamentarian stated that billing rates for businesses based at islands electricity services are provided by STELCO in Alifu Alifu, Alifu Dhaalu, Vaavu and Kaafu Atolls and for businesses based at islands electricity services are provided by Fenaka are much higher. It was stressed in the resolution that discrimination in billing for business based at Male’ area and atolls posed many difficulties to small businesses.

Therewith, the resolution underscored the increasing concerns and complaints by small businesses operating guesthouses, dive centers, hotels, restaurants and local shops

The resolution stressed that the discrimination reduces profit to businesses based at atolls – many running on a loss. It further stated that business owners were raising concerns regarding the discrimination, urging against it, at many forums.

Comparison of STELCO’s rates shows that the company charges MVR 3.30 for 0-100 units in Male’ area. Meanwhile, MVR 3.25 is charged for 0-100 units in atolls. For 101-300 units, STELCO charges MVR 3.35 in Male’ area whilst MVR 3.75 is charged in atolls.

MVR 3.65 is charged by the utility company for 301-500 units in Male’ area. For atolls, the rate is set at MVR 4.75. In atolls, MVR 6 is charged for over 300 units. However, only MVR 4 is charged for 501-600 units in Male’ area. Meanwhile, MVR 4.35 Is charged for 601-3,000 units in Male’ area. The rate stands at MVR 5.75 in atolls. Merely MVR 6.65 is charged in Male’ area up to 10,000 units.

Henceforth, the resolution underscores the importance of eliminating this discrimination, citing bands and rates for businesses should be the same. Apart from this, the resolution also calls to fully dissolve USK quota formulated by Utility Regulatory Authority regarding the use of renewable energy.

The resolution also states that if the discriminated in billing for electricity services in Male’ area and atolls cannot be eliminated, an easement to taxation may solve the issue.