Thursday Nov 14, 2024
Thursday Nov 14, 2024
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| Public Utilities Commission Chairman Janaka Ratnayake at the media briefing yesterday – Pic by Ruwan Walpola
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Masses already suffering from shortages of essentials and soaring inflation could face an electric shock with the CEB wanting a hefty 82.4% hike in tariff to cover its rising cost with power sector regulator cautioning haste whilst
awaiting Government stand.
The Public Utilities Commission of Sri Lanka (PUCSL) yesterday confirmed that no permission has been granted yet to increase electricity tariffs but admitted that a hike is inevitable unless the Government comes up with alternatives given the current crisis faced by the Ceylon Electricity Board (CEB) following 40% devaluation of the Rupee and rise in fuel prices.
Amidst on-going power cuts, much controversy was stirred after Power and Energy Minister Kanchana Wijesekara stated the electricity tariff hike will be implemented during a television program on Monday. However, the Minister yesterday clarified that no such measures will be implemented.
PUCSL Chairman Janaka Ratnayake told journalists yesterday that it was harmful to make hasty decisions citing that it should be done in a timely and transparent manner.
“The power industry is an area that is properly regulated and tariffs cannot be hiked at the middle of the night. The Commission has an inalienable responsibility to protect the rights of electricity users and suppliers,” Ratnayake said.
He said the CEB has submitted several proposals to the Commission requesting for a price hike given the economic conditions.
“Following a request made before the dollar floated, a new proposal was again presented by the CEB recently under the present circumstances. We are studying this proposal,” Ratnayake said.
It was pointed out that CEB’s expenditure has soared to purchase electricity and to import coal and fuel including diesel. According to CEB submissions, its revenue requirement is Rs. 505 billion and sales estimate based on existing tariff is Rs. 276 billion. As per the proposal of the CEB, the current cost per unit of electricity is at Rs. 53.
The proposed hike of tariff by 82.4% is expected to fully recover the 19 March forecast cost. However the revenue requirement may further increase by Rs. 200 billion considering the recent changes in exchange rate and fuel prices.
“At present the monthly income of the CEB is around Rs. 22 billion. Of this, Rs. 18 billion is to purchase electricity from private power plants. The prices of coal and diesel have increased by 130%. We have been informed that the expenses of the CEB have gone up by 45% after the devaluation of the rupee as well. Around 90% of the generation costs of the CEB is spent on imported fuels including coal and diesel,” Ratnayake explained.
“We acknowledge that some increase in tariffs is necessary for uninterrupted power supply. But it should be implemented in a fair manner after consulting all parties concerned,” he said, adding that the last price revision was done in 2014.
PUCSL Chief also assured that the expenses incurred due to the inefficiency of the CEB will not be allowed to be passed on to the end users, noting that certain conditions will be imposed to omit such expenses.
“After considering all these factors only the Commission will consider an increase in tariffs,” Ratnayake said adding the electricity tariff revision proposal submitted will be made public for consultation in the near future.
