SL’s electricity tariffs rise to unprecedented levels
Sri Lanka’s electricity tariffs will go up to an unprecedented level after seven years amidst high cost for power generation incurred by the Ceylon Electricity Board (CEB) as well as the fuel shortage and heavy debts at the Ceylon Petroleum Corporation (CPC), CEB sources said.
The Public Utilities Commission of Sri Lanka has approved the revised tariffs. The Cabinet memorandum on the electricity tariff hike is to be presented to the Cabinet of Ministers at its next meeting tomorrow.
This decision was taken at a discussion with high officials of the CEB held at the Power Ministry chaired by Minister Pavithra Wanniarachchi on Wednesday.
CEB spokesperson Additional General Manager Andrew Navamani said that the proposal was made to bridge the gap between the costs of generating electricity in comparison to the cost of fuel.
He stated that the relevant proposal is expected to be forwarded to the Government by the Public Utilities Commission soon.
He further pointed out that at present, although a unit of electricity costs around Rs. 16, the CEB has to bear a higher cost to produce a unit of electricity.
The tariff hike will reduce the losses of the power utility which is estimated to be around Rs.173 billion this year; a Finance Ministry official said adding that it is essential to increase the rate to around Rs. 90 per unit on average from the present average tariff of Rs.18.57.
According to the draft memorandum, the electricity bill of the poorest of the poor consumers numbering around 1.39 million whose power consumption clarified under the first block of 0- 30 units will be increased by around 499 per cent, 5 times more than the current tariff.
The electricity traffic of around 1.7 million people who use 31-60 units will be increased by 350 per cent or 3 and 1/2 times while the electricity bill of 1.69 million consumers will go up by 166 per cent.
The average electricity bill of normal households will go up by 78 per cent but high net worth consumers who use over 180 units will have to pay 18 per cent more than their present electricity bills.
Former Power and Energy Minister Patali Champika Ranawaka noted that the CEB’s plan to increase the electricity tariff to an unbearable level for the public was unjustifiable as it has failed to provide electricity 24X7 for consumers.
He added that CEB has fallen into this abyss due to inefficient management, corruption and waste and its heavy overhead expenditure.
According to provisional estimates of the CEB, the expenditure for direct power generation of the board will be in the region of Rs.287 billion and the revenue from the sales of power units is Rs. 263 billion this year.
The total expenditure included the distribution, transmission, loans salaries and other overheads. The CEB’s total power generation cost is consisted of Rs.52 billion for fuel, Rs.85 billion for coal, Rs.100 billion for external power purchase, and Rs.48 billion for renewable energy purchase.
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