President Announces Transition from Banded to Flat Electricity Rates

President Ibrahim Mohamed Solih has unveiled his intention to change the pricing structure for electricity, yesterday, opting to replace banded pricing with a flat rate. 

This announcement comes as a response to widespread concerns raised by citizens during the President’s campaign about the financial burden posed by fluctuating electricity bills.

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Speaking at a campaign event held in Male’ City, President Solih acknowledged the challenges faced by many households in the capital. He revealed that numerous residents have been grappling with the strain of mounting expenses, particularly their electricity bills. 

He emphasised the desire of the public for a reduction in their electricity costs and pledged to address this issue by transitioning from the current banded pricing system to a flat-rate structure.

The President’s decision to implement a flat rate is aimed at ensuring that the cost of electricity remains stable, irrespective of consumption levels. This move is expected to prevent disproportionate increases in electricity bills as a result of higher usage.

President Solih also highlighted his administration’s actions in response to the economic impact of the COVID-19 pandemic. He underscored the decision to eliminate interest on loans disbursed through the SME Development Finance Corporation (SDFC) during this challenging period. 

Furthermore, he disclosed that the loan repayment period for businesses would be extended to 10 years. Notably, businesses that had already repaid loans with interest will be eligible for reimbursement.