Proposed URA Law Changes to Expand Board and Strengthen Utility Governance

The Maldivian government has tabled the Utility Regulatory Authority (URA) Act Amendment Bill, seeking to overhaul the administrative management of the nation's utility regulator. Moved by Vilufushi MP Hassan Waheed, the legislation introduces eleven key amendments designed to enhance governance and ensure a stricter separation between regulatory oversight and operational execution. A primary feature of the bill is the expansion of the URA board from five to seven members, excluding the Chief Executive Officer (CEO). While the CEO will maintain a seat on the board, the amendment strips them of voting rights. This shift aims to prevent undue executive influence over board decisions and establish a more robust system of checks and balances. Under existing laws, board members serve a single five-year term. The proposed changes would allow non-CEO members to be re-appointed for multiple terms, provided they follow the standard selection procedures. To ensure a swift transition, the bill stipulates that new board members must be appointed within 30 days of the President's assent to the Act. During parliamentary debates, Milandhoo MP Hassan Mufeed argued that increasing the board's size would invite more diverse technical expertise and foster transparency. He emphasized that separating administrative functions from operational duties would allow for smoother public service delivery without legal conflicts. Feydhoo MP Ibrahim Didi added that the reforms are vital for centralizing oversight and strengthening the overall regulatory framework. Despite the support, the bill faced scrutiny from the opposition Maldivian Democratic Party (MDP). Lawmakers from the MDP raised concerns that the amendment fails to specify the required professional qualifications for the CEO position. They further questioned whether these structural changes would genuinely resolve systemic failures within the utility sector or simply introduce unnecessary procedural complexity. If passed, the amendments will mark a significant shift in how the Maldives regulates its essential utilities, prioritizing technical independence and board-level authority over executive leadership.