State Electric Company Limited (STELCO) has officially begun providing electricity services in Addu City, marking the company’s return to the southern city after 17 years.
A special flag-raising ceremony was held in Hithadhoo on Wednesday to mark the commencement of STELCO’s operations following the transfer of electricity services previously managed by Fenaka Corporation.
STELCO Managing Director Dr Ali Azwar raised the Maldivian national flag at the ceremony, while Deputy Managing Director Aishath Muzna raised the company’s flag.
Speaking at the event, Azwar reflected on STELCO’s history in Addu, noting that the company had provided electricity services in the city 17 years ago.
He said President Dr Mohamed Muizzu’s decision to return responsibility for Addu’s electricity supply to STELCO represents an important step towards establishing a more reliable and sustainable power service for residents.
The formal commencement of operations follows preparations by STELCO to take over Addu’s electricity infrastructure. Azwar and other senior company officials travelled to the city ahead of the transition, while technical teams have been assessing powerhouses, distribution networks and other infrastructure required to maintain services.
The Addu takeover forms part of a major restructuring of State utility companies announced by President Muizzu on September 7.
Under the restructuring, Fenaka Corporation is being dissolved, with electricity operations transferred to STELCO. The government has said consolidating electricity services under a single State-owned provider is intended to improve efficiency, reduce duplication and strengthen the financial sustainability of utility operations.
The transition represents a major expansion of STELCO’s national role. The company has historically been the principal electricity provider for the Greater Malé region while also operating powerhouses and utility services across a number of atolls.
STELCO traces its history to the introduction of electricity services in Malé in 1949 and was formally established as State Electric Company Limited in 1997. Before the latest nationwide expansion, the company operated 35 independent power plants in addition to water and sewerage facilities on several islands.
STELCO has been carrying out technical assessments and preparations in different parts of the country as it moves to absorb electricity operations previously handled by Fenaka.
The government has said the consolidation is intended to allow STELCO to operate electricity services on a national scale while standardising service quality, infrastructure management and operational procedures across the islands.
Addu’s other major utility services are also undergoing a transition. MWSC and Fenaka recently signed a framework agreement for the transfer of water and sewerage services in Addu City and Fuvahmulah City to MWSC.
Under the new structure, STELCO will assume responsibility for electricity while MWSC takes over water and sewerage services, separating the utility functions previously managed by Fenaka.
The government has presented the changes as part of a broader restructuring of State-owned enterprises aimed at reducing overlapping functions and improving the efficiency of essential public services.
Wednesday’s flag-raising ceremony formally marks STELCO’s return as Addu City’s electricity provider after 17 years.
