Govt. explains inevitable adjustments to electricity tariff

Wednesday, 4 October 2023 00:22 - - {{hitsCtrl.values.hits}}

The Government yesterday explained the inevitable adjustment required in electricity tariffs, assuring the public that it is a temporary measure.

“This adjustment, deemed necessary to offset the losses incurred by the Ceylon Electricity Board (CEB) and to ensure an uninterrupted power supply,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said in responding to queries posed at the post-Cabinet meeting media briefing yesterday. He also acknowledged the challenges that the public may face. “The Power and Energy Minister presented a comprehensive explanation to the Cabinet, underlining the limited alternatives available to rectify the financial setbacks experienced by the CEB. The ultimate authority for approving this adjustment now lies with the electricity regulator – the Public Utilities Commission of Sri Lanka (PUCSL),” he said. The Co-Spokesman asserted that the financial losses incurred by State-Owned Enterprises (SOEs), including the CEB, are rooted in longstanding deficiencies in public finance management practices.

He underscored the prolonged delay in implementing the Public Finance Responsibility Act No. 03 of 2003, which, in turn, contributed to the economic challenges faced by the country.

It underscores the imperative for prudent financial management practices and responsible governance in the realm of public utilities

“Although this adjustment may pose a temporary burden on the public, it is viewed as a necessary step towards stabilising the energy sector and ensuring a sustained power supply,” he added.

Separately, the electricity users charged policymakers and officials of the CEB for passing on the cost burden of the corruption, inefficiencies and longstanding deficiencies in public finance management practices.