No plans to introduce a pricing formula for power: Rajitha

Thursday, 18 October 2018 00:29 - - {{hitsCtrl.values.hits}}

The Government yesterday said there are no plans to introduce a price formula for electricity, but pledged to explain the fuel pricing formula at a later date.

Under the $1.5 billion Extended Fund Facility of the International Monetary Fund (IMF), a transparent pricing policy had been proposed for the Ceylon Electricity Board (CEB), to pass on higher costs to the consumer and reduce losses of the State-owned entity. The pricing formula was initially expected to be introduced in September, but no official Government statements have yet been made.

“The CEB does not have the authority to introduce a price formula for electricity, as any price change requires the approval of the Sri Lanka Public Utilities Commission (PUCSL), and as such regular price revisions would not be practical,” Cabinet co-spokesman Dr. Rajith Senaratne said at the weekly post-Cabinet press briefing.

He said that a committee has been appointed to present suggestions on how to reduce the production cost of electricity, adding that the committee did not possess the power to decide electricity price.

Meanwhile, a Cabinet proposal to appoint a committee chaired by the Power and Renewable Energy Ministry Secretary was approved by the Cabinet. The Committee will study options to reduce the thermal power component of Sri Lanka’s power output.

Dr. Senaratne also went on to say that Finance and Mass Media Minister Mangala Samaraweera would call a media briefing at a later date to explain the fuel price formula.

“The Finance Minister informed me that he will explain the fuel price formula himself. The formula was shown to us at the Cabinet meeting, but it is very complex. I suggested they release the formula to media. We released the formula in 2002 as well. Even I can’t explain how the formula works, because it is a complicated matter,” he said.