Minister Zameer defends surge in electricity bills, noting that fuel price fluctuations will not be reflected in utility costs
Finance Minister Moosa Zameer stated that the government is working to shield citizens from fluctuating oil prices driven by the ongoing conflict in the Middle East. However, despite growing public concerns over rising electricity costs, the Minister noted that the government does not currently intend to provide additional discounts on this month's utility bills.
Finance Minister Moosa Zameer speaks during a press conference. | Presidents office
Finance Minister Moosa Zameer has defended the recent spike in electricity bills, asserting that fluctuations in global oil prices resulting from the conflict in the Middle East will not be reflected in electricity rates.
He made these remarks while speaking at a press conference held on Wednesday by the crisis committee established in response to the conflict in the Middle East.
The Minister stated that there are no plans to provide discounts despite the rise in electricity bills. Noting that March is typically a period when electricity costs increase annually, the Minister remarked that no unusual spikes in billing have been observed. Zameer further clarified that the government does not intend to offer additional discounts on this month's bills. Additionally, the Minister highlighted that electricity consumption in Malé is expected to reach 130 megawatts during this period, representing a 15% increase in usage.
"The expenditure on fuel subsidies is substantial. We are currently reviewing the formula used by STO to provide these subsidies. Efforts are being made to ensure fuel remains accessible while preventing transport sector costs from reaching unaffordable levels. Generally, we are taking measures to ensure prices do not become unmanageable," Zameer stated.
The public continues to express persistent concerns regarding the recent surge in electricity bills. In response, Minister Zameer highlighted that extensive efforts are underway to prevent fuel prices from escalating to unprecedented levels. The Minister further stated that two lagoons are currently being surveyed for the establishment of a national fuel reserve. He added that the necessary survey work for this project is scheduled to commence within the coming week.
Furthermore, the Minister stated that a final plan, encompassing design work, financing arrangements, and feasibility studies, is set to be prepared and submitted to the President. The Minister added that the project will proceed in accordance with the President’s final decision.
