Businesses warn of huge inflation as electricity subsidies cut
31 Mar 2015, 7:50 PM
Hassan Mohamed
Businesses in two atolls have warned of retail prices skyrocketing after government electricity subsidy cuts took effect this month, and called for the policy to be reversed.
Companies will no longer receive government subsidies for electricity from March onwards, while domestic households must reapply for subsidies before 9 April.
Businesses in Haa Dhaal atoll Kulhudhufushi and Gaaf Dhaal atoll Thinadhoo, which act as business hubs for their surrounding atolls have created steering committees to negotiate with the government to reinstate subsidies.
“Prices will go up 50 percent in Kulhudufushi and nearby atolls. Businesses will close and ultimately it is the public that will suffer,” said Adam Shareef, a local businessman and steering committee member for businesses in Kulhuduhfushi.
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