Energy Security: 15% Rate Increase on May 1st
The government has made a decision. Electricity rates will rise by 15% starting May 1, 2026, amid international tensions and their impact on energy supply.
However, several categories of consumers will not be affected by this increase. This includes households registered in Mauritius's social registry, as well as subscribers in the 110A, 215, and 315 tariff categories. Small and medium enterprises (SMEs) are also exempt. In total, 128,800 consumers out of 541,127 will not be impacted by this hike.
At the same time, authorities plan to manage electricity demand during peak hours. An awareness campaign will be intensified to encourage more rational energy use, particularly regarding air conditioning, lighting, and energy-intensive equipment.
Restrictions are being prepared to limit what are deemed non-essential uses, such as decorative building lighting, illuminated billboards, and inefficient use of air conditioning systems in commercial spaces.
The government is also counting on accelerating renewable energy projects and providing incentives to reduce consumption during high-demand periods. The goal is to maintain the stability of the electrical grid while minimizing the crisis's impact on households and businesses.
Shamshir Mukoon, director of the Central Electricity Board (CEB), stated, "This 15% increase will recover about Rs 3 billion." He emphasized that this increase does not fully reflect the rise in international market costs. He mentioned that a 25% increase would have been necessary to fully compensate for the surge in heavy fuel oil prices, which still account for nearly 40% of electricity production in Mauritius. "We calculated that this 15% increase will recover about Rs 3 billion, while the total additional cost is estimated at Rs 4.8 billion."
The CEB will need to absorb nearly Rs 1.8 billion to limit the impact on consumers. "It's a balancing act, as we also have to consider the most vulnerable categories," added the director.
In this context, several groups have been excluded from the rate increase. This includes households registered in the social registry, small consumers under tariff 110A, as well as small commercial activities (tariff 215) and certain small industries (tariff 315). In total, around 128,000 subscribers out of more than 540,000 will not be affected.
Beyond the tariff adjustment, the CEB highlights long-standing structural challenges. "This dependence on heavy fuel oil directly exposes us to international market fluctuations. It's a reality we must deal with."
The CEB director also mentioned the aging production fleet, a major issue for the country. "We have been facing this challenge for a long time. It is imperative to launch large projects to renew our equipment."
This situation was particularly felt during the last summer period, marked by tensions in production capacity. "We were in a delicate situation, but we managed to get through without major incidents," he noted.
In the current context, the energy transition appears to be a priority. Calls for tenders for around 405 MW of solar projects with battery storage have already been launched. However, their integration will require substantial investments in infrastructure. "We need to strengthen the grid, modernize substations, and invest heavily to integrate these new capacities," the CEB director emphasized.
On the other hand, Suttyhudeo Tengur, director of the Association for the Protection of the Environment and Consumers (APEC), believes that the 15% electricity rate increase is unjustified. He argues that electricity losses in Mauritius are not solely due to technical constraints but also reflect a failure of the network. "Nearly one in five units produced is lost. This represents a silent financial leak that can reach Rs 3 billion per year."
He believes that consumers indirectly bear these losses through higher tariffs. "It's not a production problem, but a system inefficiency problem," he insists.
For Suttyhudeo Tengur, a comprehensive reform of the electrical network is necessary. Reducing these losses, even partially, could save hundreds of millions of rupees without resorting to a price increase. "Reforming the network is not a choice. It is the most cost-effective energy reform Mauritius can implement today," he concludes.
Khalil Elahee, CEO of MARENA, considers the 15% electricity rate increase to be moderate given the current energy context. He points out that 128,000 residential and commercial consumers will not be affected by this increase, while for others, the immediate impact will be mitigated by reduced consumption associated with winter.
He believes this tariff revision should be seen as a signal in favor of the energy transition. "The new tariffs make investment in solar photovoltaic with batteries more profitable," he states, particularly urging large consumers — industrial, commercial, and residential — to reduce their dependence on the grid.
Khalil Elahee also emphasizes the need to improve energy efficiency and limit waste, two levers that will help cushion the impact of this increase. He recalls that the previous increase in 2023 was larger at 20%, significantly affecting industries.
In a context marked by a heavy dependence on fuel oil — representing over 68% of CEB's costs, or about Rs 4.8 billion more in 2026 — he believes that authorities aimed to avoid a social shock by limiting the increase.
However, the expert regrets the lack of more ambitious measures in the transport sector. "We need to seriously consider introducing biofuels to reduce our dependency on imports."
Sunil Dowarkasing criticizes the measures announced by the Cabinet as lacking strategic coherence. The energy expert critiques an approach he deems contradictory, mixing short-term decisions with a lack of clear vision for the country's energy future.
"From May 1, we will see a 15% increase on electricity bills. However, the announced measures do not all make sense," he laments. While he acknowledges some progress, particularly regarding strategic storage and the encouragement of energy self-production, he believes the overall strategy is lacking direction. He claims that authorities send contradictory signals. "On one hand, we announce 405 MW of renewable energy. On the other hand, we talk about intensifying the use of coal and oil. We are replacing one fossil fuel with another. This is not coherent."
Sunil Dowarkasing also points to what he describes as a "firefighting" approach, with measures taken in urgency without fitting into a comprehensive strategy. "It's a jumble of decisions. There is no clear vision or structured direction."
For the expert, this situation results from inadequate planning in the energy sector. He believes consumers will directly pay the price. "Once again, consumers will suffer the consequences of poor planning and management of energy security."
