Public views sought to reduce cost of electricity

The Public Utilities Commission of Sri Lanka (PUCSL) yesterday said consultation and inputs from the people would be useful to reduce the cost of electricity in the country.

“A public consultation is an essential interactive mechanism to find a solution to reduce cost of electricity. This could be achieved through meaningful ideas and views expressed by experts, general public and interest groups,” PUCSL said in inviting the people to actively participate in the process ahead of the proposed hikes in tariffs by the Ceylon Electricity Board (CEB).



PUCSL said the CEB has estimated that the total electricity demand for this year would be 10.95 billion KWh. Consequently, to cover this electricity demand the CEB has estimated that its expenses for this year would amount to Rs. 268 billion. Based on CEB’s own estimates the per unit cost of electricity would be Rs. 24.47.  In other words, the average per unit cost of supplying electricity to a consumer is Rs. 24.47. The cost estimates filed by the CEB require approval from the Public Utilities Commission of Sri Lanka.

The aforementioned cost estimate of Rs.268 billion was assessed by the Commission based on the appropriateness (prudency) of the expenditure and further examined whether it was prepared in line with the approved tariff methodology.  These assessments revealed that, Rs. 40 billion could be reduced from CEB cost estimates. Therefore, the Commission has determined that this year’s electricity demand of approximately 11 billion units could be supplied without exceeding Rs. 228 billion.

Therefore, the Commission was able to reduce Rs. 40 billion in expenses from CEB cost estimates, which would have made a direct impact on electricity consumers and Government electricity subsidies. As a result of the Commission’s regulatory interventions, the per unit cost of electricity supply has been reduced to Rs. 20.83. Consequently, the Commission has been able to bring down the per unit cost of electricity by Rs. 3 and 65 cents.

Last week the Ceylon Electricity Board submitted revised cost estimates based on the Commission approved cost estimates of Rs. 228 billion. As of now the new revised tariff proposal submitted by the Ceylon Electricity Board has been announced to the general public and to all stakeholders.  Along with this the Commission has also published all relevant information pertaining to electricity generation costs, which has been taken into account by the CEB in its new tariff proposal.

 The Commission is seeking a public consultation on the new tariff proposal submitted by the CEB, to elicit views and suggestions from the general public and from stakeholders, on the proposed expenses and costs contained in the new tariff proposal.

When sending in views and suggestions all stakeholders are requested to pay attention to the following:

How the estimated costs of electricity supply for this year of Rs. 228 billion could be reduced further

The applicability of the various costs identified by the CEB

The relationship between the capital expenditure required by the CEB and the new tariff proposal submitted by the CEB

Alternative cost effective tariff proposals to cover this year’s electricity demand of 11 billion kWh

The new tariff proposal submitted by the Ceylon Electricity Board and all information pertaining to this proposal (including relevant methodologies and calculations) can be accessed from the Commission website http://www.pucsl.gov.lk/english/information-centre/tarff-revision-2013/.

Written correspondence in this regard can be sent through registered post or through e-mail to [email protected].  When sending in written correspondences please mention the words public consultation on electricity tariff revision 2013 on the top left corner of the envelope or the subject line of the e-mail.

Address: Public Utilities Commission of Sri Lanka, Level 6, BOC Merchant Tower, # 28, St. Michael’s Road, Colombo 3. Further information on the public consultation can be obtained by calling 0772701106.