Majuro, Marshall IslandsΒ βΒ On June 1, 2026, MEC implemented anotherΒ increaseΒ to electricity tariffs across the islands we serve. We know this is not welcome news, and we want to take a moment to explain why this step was necessary and what your company is doing to manage theΒ difficult situationΒ we all find ourselves in.Β
The reason behind this adjustment is straightforward: the cost of the diesel fuel MEC imports to generate electricity has risen dramaticallyΒ as a result ofΒ the ongoing global fuel crisis. The price of a single fuel shipmentΒ has, at times,Β nearly tripled compared to what it was before the crisis began. MEC purchasesΒ its dieselΒ on the global market at whatever the prevailing price may be, andΒ it isΒ shipΒ thousands of miles to our shores. When that price rises this sharply, the cost of generating every single kilowatt-hour of electricity rises with it.Β
For as long as possible, MEC,Β with the valuable support of the Government of the Republic of the Marshall Islands,Β worked to delay and cushion the impact of these increases so that our customers would not feel the full force of the global price shock all at once. The Government’s financial support allowed us to hold tariffs steady for a period, and when an adjustment finally became unavoidable, we deliberately structured it to be introduced gradually, in small steps, rather than in oneΒ large increase. This was a conscious decision made with our customers’ wellbeing in mind.Β
We also want to be open with our customers about another challenge that adds to the pressure: cash flow. MEC can only continue to buy fuel and keep the power plants running if bills are paid on time. Unfortunately, a significant amount of money is owed to MEC by customers who pay late, and by some who do not pay at all. When payments do not come in as they should, it becomes harder for MEC to pay our own fuel supplier on time and to keep fuel arriving on schedule. Keeping the lights on is a shared responsibility, andΒ timelyΒ payment from every customer, such asΒ households, businesses,Β State-Owned-Enterprises,Β and government alike,Β directly helps MEC keep electricity flowing reliably to everyone.Β
βI want our customers to know that I understand exactly how this feels, because I feel it too. Even though I work for MEC, I am also a customer. When I open my own electricity bill at home, I see the same increase that every other family sees, and I feel the same pressure on my household budget. None of us wanted this, and we did everything we could to hold it off for as long as possible. But the reality is that the cost of keeping the lights onΒ in the RMIΒ has gone up, and as a company we cannot continue to provide reliable power if we cannot cover the cost of the fuel that generates it,βΒ said the Chief Executive Officer of MEC.Β
Even as we navigate these immediate challenges, MEC is working hard on the longer-term solutions that will reduce our dependence on expensive imported diesel and help bring costs down over time. TheseΒ include renewable energy projects such as the solar and battery storage systems being installed across our grid, improvements to system efficiency, programs to reduce energy losses, and major rehabilitation of our generators to make them more fuel-efficient and reduce our reliance on costly temporary rental units. Every one of these efforts is aimed at building a more affordable and resilient energy future for the Marshall Islands.Β
MECΒ sincerely thanksΒ our customers for their patience and understanding during this difficult period. WeΒ remainΒ fully committed to keeping you informed, to being honest about the challenges we face, and to doing everything within our power to deliver the most reliable and affordable electricity possible for every community we serve.