CEB Chairman rules out further electricity subsidies for low-income users

Thursday, 5 December 2024 01:51 - - {{hitsCtrl.values.hits}}

CEB Chairman Dr. Tilak Siyambalapitiya

Says low-income households already receive an 80% subsidy through cross-subsidisation as commercial and industrial establishments pay higher amounts
Opines no capacity to increase current subsidy levels further, although subsidies for specific consumer groups are part of CEB’s policy
Asserts CEB’s focus should be on financial sustainability rather than expanding subsidies
Insists on moving forward with projects delayed for 40 years under new administration

Ceylon Electricity Board (CEB) Chairman Dr. Tilak Siyambalapitiya recently said that further reductions in electricity bills for low-income electricity users are not feasible, citing the existing 80% subsidy already provided to this group.

Speaking at a panel discussion on the energy sector, Dr. Siyambalapitiya explained the financial strain of the current subsidy structure and emphasised the need for sustainable practices in the electricity sector.

“Low-income households already receive an 80% subsidy. For a bill of Rs. 1,000, they pay only Rs. 200. This subsidy is made possible through cross-subsidisation with commercial establishments paying Rs. 1,400 for a Rs. 1,000 bill and industrial users paying Rs. 13,000 for a Rs. 10,000 bill,” he said.

His remarks follow a statement from Cabinet Spokesman and Minister Dr. Nalinda Jayatissa on Tuesday, who assured that the upcoming electricity tariff revision would provide tangible benefits to the public.

The CEB is expected to submit the revised tariff proposal to the electricity regulator – the Public Utilities Commission of Sri Lanka (PUCSL) – tomorrow (6).

Dr. Siyambalapitya clarified that the electricity sector does not receive any subsidies from the Government or external institutions, such as international organisations. Instead, it operates on a policy of matching income and expenditure, without the expectation of profit. While subsidies for specific consumer groups are part of this policy, he stressed there is no capacity to increase the current subsidy levels further.

“We need to gradually reduce the percentage of these subsidies. There is a limit to how much these subsidies can be increased. The focus should be on financial sustainability rather than expanding the subsidy,” he added.

The Chairman also expressed optimism about long-delayed energy projects moving forward under the new administration.

“We are waiting for projects that have been delayed for 40 years to proceed without further delay, at the right time and at the right price,” he noted.