Hotels cheer cut in power tariff

Monday, 29 September 2014 00:55 - - {{hitsCtrl.values.hits}}

The hotel industry has welcomed the recent announcement by President Mahinda Rajapaksa to reduce the electricity tariff by 25% though specifics are being awaited upon from the Public Utilities Commission.

Heads of the Tourism Hotels Association Sri Lanka (THASL) and the Colombo City Hotels Association told the Daily FT that the move will reduce cost as well as help improve the bottom line. “It is certainly positive news for us and we welcome the reduction. It will bring down our expenditure greatly since the hotel trade is one that utilises electricity to a great extent. If this continues it will be a huge advantage for the industry as in the entire region our hotels pay the highest for electricity,” THASL President Jayantissa Kehelpannala said.

Sharing similar sentiments, Colombo City Hotels Association President K. Shanthikumar said: “We certainly welcome the reduction since it will reduce our expenses by a substantial amount which will help improve our bottom line.” Although President Rajapaksa made the announcement with immediate effect last week during a speech at bilateral talks with the then visiting Chinese President Xi Jinping, the tourism industry as well as others are yet to receive specific details from the Public Utilities Commission (PUC) as to how the reduction will be implemented, that is if it will be a blanket waiver or based on units used. Nevertheless, the Associations stated that a reduction in any form was much appreciated after the “super hike” imposed on the sector that had majority of the hotels paying an average of 15% of their turnover for energy. While mid last year the electricity tariffs were increased across all sectors, the hotel industry was singled out to pay higher prices. According to data from the Ceylon Electricity Board (CEB), sales to hotel increased by 5% in 2013.

Pavithra says power tariff cut gazette out soon

Power and Energy Minister Pavithra Wanniarahchchi said

yesterday that the gazette in connection to 25% reduction in electricity tariff will be out this week. She said following the announcement by President Mahinda Rajapaksa, the Ministry, CEB and the Ministry of Finance have been in discussion to finalise details. She confirmed that the 25% reduction will be effective from next billing cycle.