STELCO is surreptitiously overcharging citizens an additional MVR 1,200 every month without their knowledge: Shamheed
Members of Parliament and the general public are expressing growing concern over STELCO’s extraordinary surge in profits, alleging the increase stems from hiking electricity service fees. According to audit reports, the company’s profits have risen by 30 percent, leading lawmakers to accuse the utility provider of generating gains by misleading consumers. Consequently, members have called for an end to treating essential services as high-profit commercial ventures.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency. | RaajjeMV
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumale constituency, has alleged that State Electric Company (STELCO) is generating profits by deceiving the public, claiming the utility provider surreptitiously charges an average of MVR 1,200 extra from every household.
During Tuesday's parliamentary sitting, MP Shamheed addressed the issue of service fees charged to the public for waste management and other essential services. His remarks were made during the debate on the Waste Management Bill, which was introduced on behalf of the government by Ungoofaaru MP Ibrahim Shifaz.
The member highlighted significant public concern regarding electricity bills, particularly as they are now linked to waste management fees. He noted that citizens across the country are currently voicing grievances over the unusually high costs reflected in their utility bills.
Electricity and waste management bills are currently integrated. Last year, STELCO recorded a profit of 355 million MVR. Based on my calculations, this equates to an overcharge of approximately 1,200 MVR per household. STELCO is achieving such high profit margins by adding an average of 1,200 MVR to each bill. These hidden charges imposed on the public represent the most significant obstacle to effective waste management. The fees for waste disposal are excessively high. Therefore, I urge companies providing essential services to the public to ensure that their fees are regulated by established standards. These services should not be treated as high-profit commercial ventures at the expense of the citizens.Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency.
MP Shamheed’s allegations come at a time when many believe the Auditor General’s latest report has further substantiated the public's existing suspicions.
According to the annual audit report of STELCO released by the Auditor General's Office on June 28, the company’s financial turnaround has raised significant public interest. After recording a loss of MVR 172 million in 2023, the utility provider managed to recover within a single year to post a profit of MVR 181 million. Based on last year's financial figures, the company's profit margin has seen a substantial increase of 30 percent.
Since President Muizzu’s administration took office, public outcry has intensified over electricity bills rising to unacceptable levels. STELCO has consistently attributed the surge to increased energy consumption driven by rising temperatures. However, many citizens allege foul play or "theft," pointing to instances where bills remained exorbitantly high even during months when properties were vacant. Even members of Parliament have joined the criticism, asserting that a utility company like STELCO could not generate such massive profits through standard service delivery alone.
