Tag: State Electric Company (STELCO)

Diesel fuel rationed after STO shipment delayed

The State Trading Organisation (STO) has controlled the sale of diesel fuel in the Maldives due to a shipment delay.

The delay of diesel shipments occurs “sometimes during the year” when ships carrying diesel from Dubai are “held up” in port, STO Managing Director Shahid Ali told local media.

While diesel will be made available to the State Electric Company (STELCO), resorts and general customers, new orders for diesel are being controlled by STO, according to Ali.

“This is a common problem. But there is enough oil in stock for STELCO and all the resorts, who buy oil on a regular basis. It is only the sale of oil to other groups that has been controlled,” said Ali.

“We might not be able to meet the demand of a sudden order. But regular customers will have continued supply,” he added.

The diesel shipment will arrive on Wednesday (August 14) and STO expects the control of diesel to be lifted by Thursday, according to Ali. No restrictions on petrol supplies have been enacted.

Meanwhile, Fuel Supply Maldives has also restricted the sale of diesel, following STO’s control of diesel supplies, Managing Director of Fuel Supply Maldives Adam Saleem told local media.

“We have rationed the sale of diesel to resorts. We have faced this problem before as well, but this time the delay has been prolonged,” said Saleem.

Fisherman are also facing problems due to the limited diesel sales, while resorts are complaining about running out of diesel supplies, according to local media.

Diesel fuel is the primary source of power generation in the Maldives, with most islands having separate power house facilities. Marine diesel is also used to fuel the country’s fishing and transport fleet, accounting for roughly 80 percent of the country’s consumption.

The near total dependence saw the Maldives ranked dead last in report published by the UNDP in 2007 on the vulnerability of developing countries to fluctuating oil prices, a fair stretch behind Vanuatu, effectively placing the country among the world’s most oil-addicted nations.

“Island countries in general are extremely vulnerable to increased oil prices. They comprise distant and small markets and have to bear the burden of higher shipping costs, while electrical power generation is largely fueled by diesel,” the report noted.

The Maldives dependency on oil was discussed in October 2012 by President Mohamed Waheed at the World Energy Forum in Dubai.

“A development path primarily based on expensive diesel generated electricity is unsustainable in any country, let alone a small country like Maldives,” said Waheed at the forum’s opening ceremony.

“Today, we spend the equivalent of 20 percent of our GDP on diesel for electricity and transportation. We have already reached the point where the current expenditure on oil has become an obstacle to economic growth and development,” he continued.

Waheed explained that the current price of 35-70 US cents per KW hour meant that the government was being forced to provide “heavy subsidies” to consumers, giving little option but to move towards a low carbon alternative.

State Trading Organisation (STO) Managing Director Shahid Ali was not responding to calls at time of press.

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Male’ could face street light black out over unpaid electricity bill, city mayor claims

The city of Male’ could face its street lights being “switched off” should an outstanding MVR 3.9 million (US$ 254,569) electricity bill fail to be paid by December 27, Male’ City Council (MCC) Mayor ‘Maizan’ Ali Manik has said.

The outstanding payment owed to State Electricity Company Limited (STELCO) by the MCC threatens to leave all council owned properties and utilities –which includes street lights – without power, Manik today claimed (December 22).

Earlier this week, unpaid bills to telecommunication service provider Dhiraagu resulted in the MMC having its telephone and internet services disconnected by the company.

STELCO have since denied claims that they will cut the MCC’s power, but has stated that the company “cannot say what will happen if the bill remains unpaid”.

Speaking to Minivan News, Mayor Manik blamed the Finance Ministry for the lack of payment, claiming that the government body had failed to release the funds despite the MCC completing all relevant documents needed to do so.

“I sent a letter to the [Finance] Ministry last week following one the MCC received from STELCO saying they will cut our electricity if the bill is not paid.

“When I spoke with [Minister of Finance and Treasury] Abdulla Jihad yesterday, he gave me no reason as to why the payments had been delayed. He must have known about the bills because of all the letters we have sent him.

“He told me that both the STELCO and Dhiraagu bills will be paid tomorrow (December 23),” claimed Manik.

Finance Minister Abdulla Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

MCC “long history” of debt

STELCO Media Co-ordinator Abdulla Nazir meanwhile said that MCC had a “long history” of outstanding payments, adding that the stated figure of MVR 3.9 million was only part of the overall debt owed to the company.

“STELCO has received no money so far. There are many months of outstanding debt from MCC, more than the MVR 3.9 million we have asked for.

“While we have received no statement or payment from the Finance Ministry, we have received a letter from MCC dated December 19. They said their bills have been sent to the Finance Ministry, and they have asked the ministry to settle the outstanding payments,” Nazir told Minivan News.

However, Nazir denied Manik’s claims that STELCO had warned the MCC it faced having electricity disconnected. However, in accordance to STELCO’s regulations, Nazir stated that any public or private organisation failing to pay its electricity bills was at risks of having its power cut off.

Dhiraagu debt

On Thursday (December 20), local media reported that Dhiraagu had disconnected all phone and internet services it provided to the MCC due to unpaid bills.

MCC member Ibrahim Shajau claimed that over MVR 400,000 (US$ 26,109) is owed by the council to Dhiraagu, alleging that the Finance Ministry had failed to release the funds.

“We have sent all relevant documents to Finance Ministry. It’s up to [them] to pay the money. Dhiraagu said that Finance Ministry had not paid the money,” he told Sun Online.

Dhiraagu Marketing and PR Ibrahim Imjad Jaleel told local media that the services were disconnected after advising the council on numerous occasions to pay their bills.

“We disconnected the services today after giving them time even today to pay the bills after the offices opened.  We had to cut off our services after their failure to pay any amount after several days of discussions. We are trying with our customer even now, to find a way to resume the services,” he said.

Earlier in October, STELCO disconnected the power supply to state broadcasters Television Maldives (TVM), Voice of Maldives (VOM) as well Male’ City Council over a failure to pay overdue bills.

MCC member Ibrahim Shujau told newspaper Haveeru back in October that the delay in settling the bill was again down to the Finance Minsitry.

STELCO permit dispute

STELCO and MCC clashed earlier this month when the electricity company filed a case with the Civil Court requesting it invalidate MCC’s decision to disallow issuing permits to the company.

In a statement released Wednesday (December 12), the state electricity provider stated that the lawsuit was filed because the MCC had blocked the company from providing some of its services, resulting in disruption for customers in the capital.

The disallowed permits are needed to provide electrical services to properties around the capital.

STELCO has argued that the MCC’s decision lacked any legal grounds and therefore requested the court to decide if the decision was valid or not. It also requested the court invalidate a letter sent to STELCO by the MCC informing it of the decision, so that it could resume its services.

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STELCO takes Male’ City Council to court over ‘permit conflict’

The State Electric Company (STELCO) has filed a case with the Civil Court requesting it invalidate Male City Council’s (MCC’s) decision to disallow issuing permits to the company.

In a statement released Wednesday (December 12), the state electricity provider stated that the lawsuit was filed because the MCC had blocked the company from providing some of its services, resulting in disruption for customers in the capital.

The disallowed permits are needed to provide electrical services to properties around the capital.

STELCO argued that MCC’s decision lacked any legal grounds and it therefore requested the court to decide if the decision was valid or not. It also requested the court invalidate a letter sent to STELCO by the MCC informing it of the decision, so that it could resume its services.

Speaking to Minivan News following the lawsuit being filed, MCC member Ibrahim Shujau said that the council had not yet been officially informed of the case and had only been made aware of the matter through media reports.

Shujau claimed that STELCO was releasing statements that were misleading and did not convey what had really happened.

“The Housing Ministry informed us to stop providing permits stating that the Ministry itself would carry out the issuing of permits. We told them under the Decentralization Act, it was our responsibility in giving the services. But they gave a deaf ear to our concerns,” He explained.

The Male’ City Councillor also alleged that STELCO was carrying out its operations in breach of national laws, therefore, the MCC had on numerous occasions advised them not to disregard these laws.

However, Shujau said that STELCO’s failure in heeding its request had meant that the council had to halt services provided to the state electricity provider.  He added that the MCC would only resume providing permits if the state electricity provider came back within “the boundaries of law”.

Shujau alleged that Housing Minister Dr Mohamed Muizz had been responsible for the dispute in an attempt to defame members currently serving in the MCC ahead of the next local council elections.

“I would not let [Housing Minister Muizz] fail the city council, I would fight against it, even single handedly if required to,” said Shujau.

Managing Director of STELCO, Dr Mohamed Zaid was not responding to calls at time of press.

The dispute

The Row between STELCO and the MCC escalated this week after the state-owned company held a press conference on December 10 to express concern over the council’s decision to disallow issuing permits to them.

At the press conference, STELCO Deputy Managing Director Mohamed Latheef said that the company had been informed by the MCC that it was to temporarily cease providing services such as digging up roads in the capital as of December 5.

According to Latheef, the dispute began when STELCO started providing electricity to several locations in Male’ without the permission of the city council. He argued that properties in concern had been previously taken from the city council by the Housing Ministry.

“As the nature of the services provided by this company are such that we require the assistance and cooperation of the municipal service provider of the state, and because Male’ City Council has currently ceased providing its services, the subsequent result is that the company is now unable to provide certain public services,” he said.  ”Some of the services that require the permission of the city council include digging street sides, laying cables and certain tasks that require the roads to be closed off.”

Latheef claimed the company had held several discussions with the council, the most recent of which took place Sunday (December 9).  However, the MCC was said to have remained unwilling to reverse their decision.

STELCO Engineer Ibrahim Naashid in the same press conference said that the state-owned company was receiving about 15 requests per day to connect electricity, but was unable to do so as a result of the city council’s decision earlier this month.

“On an average, we were unable to provide electricity service to 15 parties in the last three to four days. However, not all premises require the digging of roads to provide electricity cables, so we have provided electricity to some premises through our distribution box that have been previously installed. But if digging the road is required to provide the service, it is impossible to give the service now,” he told the press.

Naashid explained that the company was required to obtain a permit from the city council to lay cable even in an emergency power outage, resulting in huge difficulties for the company in the present situation.

“Earlier, it is possible for us not to immediately get a permit from the city council in an odd time like midnight hours, but we do inform their supervisors and those responsible in maintaining the roads. If it’s a difficult time like midnight hours, we carry out the work and inform them the next day,” he explained.

However, Naashid affirmed that the company would still carry out its work in providing their service to the people in case of emergencies regardless of the views that the city council may hold.

Male’ City Council’s response

In a response to STELCO’s claims, the MCC in a letter seen by local media warned the state-owned electricity provider that it would take “harsh” action if any service was provided to the “people” without its permission.

The city council said STELCO was failing to abide by laws and regulations, as well ignoring two different letters sent to the company advising it to comply with such requests.  The MCC stated that it had not received any response to its letters.

The letter signed by Deputy Mayor Shamah Rasheed and addressed to Managing Director of STELCO Dr Mohamed Zaid stated that it was the responsibility of the MCC to enter into agreements with parties and carry out business transactions.  The MCC said such transactions were to be carried out in accordance with policies set by government authorities that outline the provision of basic services such as water, electricity and sewerage services to the people as stipulated under the Decentralization Act.

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Male’ City Council clashes with STELCO over permit issue

The State Electric Company (STELCO) has claimed it is facing difficulties in providing its services to certain parts of Male’ following the city council’s decision not to issue it with permits to carry out work, according to local media.

In a press conference held yesterday, STELCO Deputy Managing Director Mohamed Latheef said it had been informed by Male’ City Council (MCC) that the company was to temporarily cease providing services such as digging up roads in the capital as of December 5, Haveeru reported (Dhivehi).

Latheef said the company had since been facing difficulties in providing electricity services to parts of Male’ as a result of the MCC’s stance.

Disputes between STELCO and the MCC started after the state electricity provider began providing electricity to several locations in Male’ without the permission of the city council.

According to Latheef, the properties affected had been previously taken from the city council by the Housing Ministry.

“As the nature of the services provided by this company are such that we require the assistance and cooperation of the municipal service provider of the state, and because Male’ City Council has currently ceased providing its services, the subsequent result is that the company is now unable to provide certain public services,” he said.  “Some of the services that require the permission of the city council include digging street sides, laying cables and certain tasks that require the roads to be closed off.”

STELCO Engineer Ibrahim Naashid said during the same press conference said that the state-owned company was receiving about 15 requests per day to connect electricity, but was unable to do so as a result of the city council’s decision earlier this month.

“On an average, we were unable to provide electricity service to 15 parties in the last three to four days. However, not all premises require the digging of roads to provide electricity cables, so we have provided electricity to some premises through our distribution box that have been previously installed. But if digging the road is required to provide the service, it is impossible to give the service now,” Naashid said.

Nashid explained that the company was required to obtain a permit from the city council to lay cable even in an emergency power outage, resulting in huge difficulties for the company in the present situation.

“Earlier, it is possible for us not to immediately get a permit from the city council in an odd time like midnight hours, but we do inform their supervisors and those responsible in maintaining the roads. If it’s a difficult time like midnight hours, we carry out the work and inform them the next day,” he explained.

However, Naashid affirmed that the company would still carry out its work in providing their service to the people in case of emergencies regardless of the views that the city council may hold.

Latheef claimed the company had held several discussions with the MCC, the most recent of which took place Sunday (December 9).  However, the MCC was said to have remained unwilling to reverse their decision.

Latheef added that the company was in discussion with relevant government authorities and would be considering legal action against the MCC if deemed necessary.

Male’ City Council responds

In a response to STELCO’s claims, the MCC in a letter seen by local media, warned the state-owned electricity provider that it would take “harsh” action if any service was provided to the “people” without its permission.

The city council said STELCO was failing to abide by laws and regulations, as well ignoring two different letters sent to the company advising it to comply with such requests.  The MCC stated that it had not received any response to its letters.

The letter signed by Deputy Mayor Shamah Rasheed and addressed to Managing Director of STELCO Dr Mohamed Zaid stated that it was the responsibility of the MCC to enter into agreements with parties and carry out business transactions.  The MCC said such transactions were to be carried out in accordance with policies set by government authorities that outline the provision of basic services such as water, electricity and sewerage services to the people as stipulated under the Decentralization Act.

Deputy Mayor Shamah, MCC councillor Mohamed Abdul Kareem and STELCO’s Managing Director Dr Zaid were not responding to calls from Minivan News at time of press.

Fallout with Housing Ministry

The MCC is also involved in an ongoing dispute with the Housing Ministry over the ownership of several areas in Male’, which have now been taken over by Housing Ministry.

In an announcement, the Housing Ministry has said that the city council’s opening of bidding for development projects of several areas of Male was against state regulations. The announcement was made after the city council open requests for bids to develop Male’ southern harbour and a part at Alimas Ufaa Carnival.

The Housing Ministry has contended that the MCC did not have any legal authority to open bidding process of the areas and that it would not be responsible for pecuniary or any other damage suffered by groups who submit bids for the development of the regions.

Despite the remarks made by the Home Ministry, MCC member Ibrahim Shujau told local media outlet Sun Online that the council believed that the Alimas Ufaa area was legally under the council’s jurisdiction.  He contended that efforts to develop a park in the area would go ahead.

The MCC on Sunday (December 9) took the matter to the parliament, where it had requested for assistance in resolving the matter.

Speaking to local media, Shujau said that the council had filed the issue with parliament after seeing that it could not carry out its work with Housing Minister Dr Mohamed Muizz in the position. He added that the case had been filed with Parliament’s Government Oversight Committee.

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