State Electric Company Limited (STELCO) has begun the formal process of taking over electricity services in Addu City, with Managing Director Dr Ali Azwar and senior company officials arriving in the southern city to oversee the transition.
The move is part of the government’s nationwide restructuring of utility services, under which electricity operations currently managed by Fenaka Corporation will be transferred to STELCO.
STELCO said its leadership team’s visit to Addu marks a key stage in assuming responsibility for the city’s electricity network.
The company said it intends to strengthen electricity services in Addu through improved infrastructure and operational standards, with a focus on providing residents with a reliable and efficient power supply.
Preparations for the transition have been underway since President Dr Mohamed Muizzu announced on September 7 that Fenaka would be dissolved and its operations transferred to other state utility companies.
Under the restructuring, STELCO will assume responsibility for Fenaka’s electricity operations across the country, while water and sewerage services will be transferred to Maldives Water and Sewerage Company (MWSC).
Once the transition is completed, STELCO’s electricity operations will extend across the Maldives, significantly expanding the company’s existing service network.
Ahead of formally taking over operations, STELCO deployed teams to different parts of the country to conduct field assessments of existing power infrastructure, operational requirements and the condition of facilities.
Addu City was among the areas assessed as part of these preparations, alongside GDh. Thinadhoo and several other island communities.
The company has also begun preparing employees and managers from newly incorporated locations for the transition. Training and orientation programmes have been conducted for station managers and powerhouse heads as STELCO works to bring operations under a common management structure.
Azwar previously said the nationwide expansion provides an opportunity to improve electricity services at island level while making operations more efficient and reducing costs.
He said extending STELCO’s service standards across the country could deliver significant benefits to the public, particularly through improvements to reliability and operational efficiency.
Addu represents an important stage in the transition due to its size and population, as well as the scale of the electricity infrastructure required to serve communities spread across the connected islands of the city.
The transfer is also taking place alongside changes to Addu’s water and sewerage services.
MWSC and Fenaka have signed a framework agreement for MWSC to assume responsibility for water and sewerage operations in Addu City and Fuvahmulah. That transition covers infrastructure, assets, ongoing projects, customer records and other operational responsibilities.
The wider restructuring follows the government’s decision to consolidate state utility operations as part of efforts to reduce duplication and improve the financial and operational efficiency of state-owned enterprises.
STELCO has traditionally provided electricity to the Greater Malé region and a number of other islands. Taking over Fenaka’s power operations will transform the company into the principal nationwide electricity service provider.
With its senior management now in Addu, STELCO is moving beyond preliminary assessments and preparations towards formally assuming responsibility for one of the largest electricity networks currently operated by Fenaka.
