Electric shockwaves hit industries
The government’s latest decision to raise electricity tariffs has created a stir among the different sectors some of whom have received temporary waivers whereas others are in limbo.
The Public Utilities Commission (PUCSL) has agreed to provide a 50 per cent reduction on the increased tariff rate to the tourism industry for a three month period until November, Tourist Hotels Association President M. Shanthikumar said.
Tourism was categorised as a different industry under a higher tariff, he pointed out adding that they were making representations to bring them back to the industrial rate.
Meanwhile, the Free Trade Zone Manufacturers Association (FTZMA) Secretary Dhammika Fernando told the Business Times following a letter sent to the Power and Energy Minister against the electricity tariffs they had now approached the Board of Investment (BOI) to assist them in obtaining a meeting.
There will be an estimated direct production cost increase of 25 per cent while an escalation in other costs will contribute to a further indirect cost of 5-10 per cent increase.
Mr. Fernando explained that the proposed rate hike by the Ceylon Electricity Board (CEB) and the actually published tariff is much higher.
In this respect, under the SME category the CEB had proposed a rate hike of 68 per cent but the actually published tariff was 82 per cent during the daytime. During this period the rate was Rs.11 and the proposed rate was 18.50 but the published rate was 20.
This was the same for the peak and off peak segments in the Industry I -1, Industry I -2 for the medium level organisation and the large category under the Industry I – 3 segment.
As a result the Joint Apparel Association Forum (JAAF) representing the apparel manufacturers has requested the PUCSL to re-assess the off-peak tariff rates as the finalised off-peak and daytime rates are “exponentially high and detrimental.”
Here under the Industry I – 2 category JAAF pointed out that despite the initial proposal by the PUCSL for the off-peak tariff to be increased from Rs.6.85 to Rs.18.50 and the daytime tariff be increased from Rs.11 to Rs.18.50 it was found that subsequently the approved off-peak and daytime tariffs were much higher than the proposed rates at Rs.15 and Rs.34 respectively.
JAAF pointed out that the PUCSL has “overlooked the needs of the apparel industry and suggestions made by JAAF at the stakeholder consultation on behalf of the industry”.
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