Seychelles: Government Shields Households from Fuel Cost Adjustment on First 400 kWh

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Cabinet has approved the implementation of the July 2026 Fuel Cost Adjustment, ensuring that no tariff increase will apply to the first 400 kWh of monthly electricity consumption for all domestic customers, Vice-President Sebatien Pillay announced at Thursday's Cabinet press briefing.

The cost of the measure will instead be recovered through a modest increase on domestic consumption above 400 kWh, along with revised tariffs for commercial and Government consumers, in an approach designed to protect households while preserving the financial sustainability of the Public Utilities Corporation (PUC).

The Vice-President said Government had undertaken considerable work to assess domestic consumption patterns before arriving at the decision, stressing that households would not be made to suffer as the country continues to manage its electricity sector. Under the new structure, consumption up to 400 kWh will see no tariff increase at all, while usage beyond that threshold will attract an increase of between 25 and 29 cents. The adjustment will come into effect once Government has finalised the structures required for its implementation.

The Vice-President linked the measure to Government's wider efforts to manage costs responsibly, pointing to savings already achieved through the earlier policy of closing Government offices at 2:30 p.m. daily. Commercial and Government consumers will also see their own revised tariffs, as part of a more equitable distribution of costs across all consumer categories.

Government has maintained that the primary objective of the adjustment is to shield the public from the impact of rising fuel costs.

"All that Government is doing here is to ensure that people do not feel the impact of the crisis," the Vice-President said, adding that on this front, Government had achieved its objective.

Distributed by APO Group on behalf of State House Seychelles.