Shamheed alleges STELCO generated huge profit by charging extra on bills

South Hulhumale’ MP Dr Ahmed Shamheed, on Tuesday, alleged that the MVR 350 million profit reported by the State Electric Company (STELCO) last year was generated by charging households an additional MVR 1,200 per month.

Shamheed made the remarks during the parliamentary debate on proposed amendments to the Waste Management Act, where he said the continued increase in electricity bills remains a major concern for the public.

"We frequently discuss the issue of high STELCO electricity bills. Based on the calculations, this equates to approximately MVR 1,200 in additional billing per household every month," Shamheed said, adding that the increased charges had resulted in substantial profits for the utility company.

While consumers have continued to raise concerns over high electricity costs, STELCO has maintained that its billing accurately reflects the services provided. The company has previously attributed higher electricity bills during certain periods to increased power consumption, particularly during warmer months.

Speaking on the proposed amendments to the Waste Management Act, Shamheed said the MVR 2 levy on plastic bags places a significant burden on small businesses. He argued that prohibiting businesses from distributing plastic bags altogether would be a more effective approach.

Shamheed also raised concerns over a proposed amendment that would permit waste generated outside a particular jurisdiction to be transported to inhabited islands. He warned that such a provision could create difficulties in monitoring and identifying the types of waste being disposed of within those communities.

Concluding his remarks, Shamheed said rising utility costs and waste management fees continue to place an increasing financial burden on the public, urging the government to give greater consideration to the impact of these expenses on citizens.