Government Moves to Cut Electricity Bills for Households Across the Maldives

In a decisive move aimed at easing the financial burden on Maldivian households, President Dr Mohamed Muizzu has directed the country’s two main utility providers—STELCO and Fenaka Corporation—to revise the existing electricity tariff system and implement a new, reduced pricing structure for the domestic category.

The announcement was made via the President’s official account on X (formerly Twitter), where he revealed a comprehensive adjustment across all usage bands. The revised rates are expected to bring substantial relief to thousands of households currently grappling with high utility bills.

Revised Domestic Tariff Structure

The proposed changes represent a notable reduction in rates across all seven bands currently applied in the domestic electricity billing structure:

  • Band 0 – 100 units:

    • Current Rate: MVR 1.50

    • New Rate: MVR 1.25

  • Band 101 – 200 units:

    • Current Rate: MVR 1.70

    • New Rate: MVR 1.50

  • Band 201 – 300 units:

    • Current Rate: MVR 2.15

    • New Rate: MVR 1.50

  • Band 301 – 400 units:

    • Current Rate: MVR 2.50

    • New Rate: MVR 1.50

  • Band 401 – 500 units:

    • Current Rate: MVR 2.95

    • New Rate: MVR 2.66

  • Band 501 – 600 units:

    • Current Rate: MVR 3.55

    • New Rate: MVR 3.20

  • Band 600+ units:

    • Current Rate: MVR 4.25

    • New Rate: MVR 3.83

This new structure not only brings uniformity within the mid-consumption ranges but also ensures that basic electricity needs become more affordable for the average household.

Experts in energy economics have long cited the seven-tiered domestic tariff system as a primary contributor to high electricity bills. The current model, which charges incrementally higher rates as usage increases, disproportionately impacts families with modest incomes and larger household sizes.

President Muizzu’s directive marks a return to consumer-focused energy reform, signaling the government’s commitment to cost-of-living relief as one of its key policy priorities. The announcement follows a historical timeline of rate adjustments, including the landmark restructuring in 2009 and discount implementations in 2016 and 2019, which aligned tariffs across Malé and the atolls.

Despite these earlier efforts, overall tariff rates had remained static—until now.