Qasim unsatisfied with STELCO’s decision

Finance Minister Qasim Ibrahim has disclosed STELCO’s Board decision to double charge state owned companies and companies which has a state share, for their consumption of electricity. Finance Minister Qasim said that this should not be the case.

Speaking at the press conference held last Monday at Finance Ministry, Qasim said private companies and public enterprises should not be differentiated and must be charged under the same basis.

“That is not a principle which I would accept. I believe that it should not be the case” said Qasim.

Qasim further said that if such procedures are allowed, state owned companies would face difficulties and would be blamed by the public. In this regard, many might assume responsible officers of such companies are incapable of proper management and consequently loose face in the public opinion, said Qasim.

Finance Minister also declared that it is not acceptable to double charge islanders for their consumption of electricity. Qasim said in principle such differentiations should not be allowed. He noted that such essential services must be afforded to the public on an equivalent basis.

The government budget for 2008 incorporates Rf 200 million subsidy for STELCO to provide electricity to residents of Male’ while Rf 100 Million was given as subsidy to provide the same to the islanders.

During the discussions at the 2008 Budget at the Majlis, managing director of STELCO Abdul Shakoor said although Rf 200 Million were given as subsidy, twice the amount is needed due global increase in fuel price.

“The price of one liter fuel is Rf 10.18. Even if electricity is produced most efficiently, 3.5 or 3.6 units could be made from a liter. Now we are selling a unit at Rf 1.60 or Rf 1.70 which means we get Rf 1.20 or 1.30 as loss from each unit” Shukoor said.