đź“· Photo: Anonymous, via Wikimedia Commons, Public domain
VICTORIA, Seychelles — The Utilities Regulatory Commission has confirmed that the electricity tariff for the first 400 kilowatt-hours of monthly domestic consumption will remain unchanged from 15 July to mid-October 2026, even as consumption above that threshold, together with all commercial and government electricity use, rises by R0.29 per kilowatt-hour.
Announcing the quarterly decision, the Commission said the move reflects a deliberate government initiative to soften the impact of fuel cost adjustments on ordinary households, while passing a share of the cost to larger users. The Commission’s tariff determination for the current review period has already been adjusted to absorb the protection.
The 400-kilowatt-hour shield is a departure from a planned broader reform. In March, Cabinet decided to delay a planned change in electricity tariffs that had been expected in April 2026, citing uncertainty in global fuel prices linked to the Iran conflict and possible lower demand if tourism weakened. According to the State House summary of the 18 March 2026 Cabinet meeting, ministers also chose not to move to a fully cost-reflective tariff framework that separates social support from tariff structure, instead retaining the existing system with built-in cross-subsidies. The relevant decisions are documented on the State House Cabinet decisions page for 18 March 2026.
In April, Cabinet approved the implementation of a Multi-Year Electricity Tariff framework as the basis for comprehensive tariff reform in Seychelles. According to the State House summary of the 29 April 2026 Cabinet meeting, the framework marks a key step towards a more transparent, predictable and cost-reflective pricing system, with tariffs to be set over three-to-five-year periods and adjustment mechanisms for fuel prices and exchange rates.
For the current quarter, the Commission noted that maintaining the existing tariff for the first 400 kilowatt-hours shields households from the immediate effect of recent fuel cost movements. Any consumption beyond the 400 kilowatt-hour threshold, alongside government and commercial customers, will see the R0.29 per kilowatt-hour increase. The Commission said the structure is intended to spread the adjustment more equitably, with the modest increase on domestic consumption above the threshold, together with the revised tariffs for commercial and government consumers, recouping the cost of the household protection.
The Commission has indicated that the next quarterly electricity tariff review will be announced in October 2026, by which point the broader Multi-Year Electricity Tariff framework is expected to shape the way tariffs are set in future review periods.
Sources cited: State House Seychelles – Cabinet decisions, 18 March 2026. State House Seychelles – Cabinet decisions, 29 April 2026. World Bank Group – Smart resilient investments key to jobs and growth in Seychelles.
Source: SN
