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CEB seeks hike in electricity rates
View(s):By Damith Wickremasekara
The Ceylon Electricity Board (CEB) is to propose a tariff increase on electricity to the Public Utilities Commission of Sri Lanka shortly, the board chairman, Wimaladharma Abeywickrema, said. This was in the wake of a decision of the Ceylon Petroleum Corporation (CPC) to increase the price of furnace oil used for thermal power generation by Rs. 25 a litre.
“We are not in a position to pay the increased amount. We have pointed out to the Treasury that if we pay the increased amount the CEB will suffer an additional loss of Rs. 24 billion during the year,” he said.
Prof. Abeywickrema said the Treasury had agreed to pay the additional cost until March 31 and thereafter for the CEB to take over the loss.
“We have no alternative but to suggest to the PUCSL to increase the tariff on electricity,” he added.
The chairman said currently a unit of electricity was generated at Rs. 21 and sold to the consumer at Rs. 17.50.
The move comes amidst a warning from the Petroleum Industries Ministry to the CEB that it would no longer be in a position to import fuel for thermal power generation if the CEB failed to honour its payments. The CEB owes the CPC Rs. 51 billion.
Petroleum Industries Minister Susil Premajayantha said he would meet Treasury officials next week to discuss the non-payment of arrears by the CEB. “We are going to propose that the CEB imports its own fuel requirements and the CPC will help only in the transportation of the fuel,” he said.
The last electricity price increase was in February last year.
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