Maldives Energy Authority (MEA) organized a meeting to present the new draft electricity tariff methodology to electricity service providers on 13th August 2013. This meeting was held at STELCO and FENAKA head office. The consultant appointed by Asian Development Bank Mr. Jorge Bircher and MEA technical team participated as resource persons to answer queries from the service providers. While the whole economy and power sector in general has experienced major structural changes over the years, there has not been a tariff review to gauge the magnitude of these changes and its effect on the service providers and customers.
The main objective of introducing a new tariff methodology is to promote efficient production and usage of Electricity and assist in promoting renewable energies in the Maldives. The new methodology will ensure that the total revenue to be generated by the tariffs covers economic and efficient costs of supply, taxes, investments and reasonable rates of return for the service providers. Social equity also forms a non-technical ingredient of the new tariff scheme. The ability of low income consumers to pay the bills will be addressed through lifeline tariff bands and through cross subsidies