Energy Crisis: 15% Increase in Electricity Rates and Preparation for Restrictions on Non-Essential Uses
The electricity tariffs will increase by 15% effective May 1, 2026, excluding individuals registered in the Mauritian Social Register, consumers under tariff categories 110A, 215, and 315, as well as SMEs. In total, 128,800 consumers out of 541,127 will be exempt. This decision was made by the Cabinet on Friday.
Context
On April 8, 2026, a Crisis Committee meeting was held to discuss the economic and social impacts of the current conflict in the Middle East, chaired by the Prime Minister. The Committee noted that on the same day, Iran and the United States reached a conditional two-week ceasefire during which maritime traffic will be permitted through the Strait of Hormuz.
The Prime Minister emphasized the need to avoid a false sense of security, as this ceasefire is fragile. Although the situation may improve, the Committee decided that immediate, medium-term, and long-term strategies must be adopted to mitigate the spillover effects of the conflict on the economy, households, and vulnerable groups.
In this context and considering "the legacy left by the previous government of a high budget deficit and significant debt levels," the budgetary space is limited, requiring a balancing exercise.
The Cabinet that met on Friday approved the implementation of the following measures:
Energy Security• Frequent reports on fuel and gas stocks, incoming vessels, and potential shortages to better plan and take proactive measures.
• Intensify public awareness campaigns on energy savings (lighting, air conditioning, motors).
• Finalize regulations to impose restrictions on electricity usage for non-essential activities that are not necessary for safety, such as:
- Operation of illuminated advertising signs, billboards, or digital screens.
- Illumination of building facades for aesthetic purposes and decorative or ornamental lighting.
- Inefficient operation of air conditioning systems in commercial and institutional premises.
- Introduce minimum energy performance standards for refrigerators and air conditioning systems.
• Encourage teleworking and flexible hours.
• Promote carpooling to maximize vehicle occupancy and reduce fuel consumption.
• Maximize the use of coal and biomass for electricity generation and reduce the use of heavy fuel oil.
• Schedule power plant maintenance to optimize coal and biomass-based production.
• Finalize a government-to-government (G-to-G) agreement with the Indian government to secure a heavy fuel oil supplier.
• Maintain a minimum strategic fuel stock (e.g., 30 to 45 days).
• Explore bulk procurement with neighboring countries to benefit from economies of scale.
• Allow industries to switch from heavy fuel oil to marine fuel.
• Provide additional incentives for households and businesses to reduce consumption during peak hours.
• Encourage the use of self-generated renewable energy and promote new uses of renewable energy.
• Unlock various renewable energy projects totaling 405 MW currently in the pipeline.
• Accelerate approvals and connection exemptions for rooftop solar installations on public buildings, hospitals, and critical infrastructure with upfront financing mechanisms or billing on the bill.
• Request the Development Bank of Mauritius (DBM) Ltd to consider offering low-interest loans under the renewable energy scheme for households and SMEs.
• Accelerate project approvals under the CEB's Agrivoltaic Scheme.
Additionally, the Cabinet noted that the agreement with Indian Oil Corporation Ltd for the supply of petroleum products is nearing finalization following discussions held during the visit of India's Minister of External Affairs, Dr. Subrahmanyam Jaishankar.
