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13.56 per cent power tariff proposal raises living costs fears
View(s):By Kasun Warakapitiya
Electricity consumers, including industrialists, bakers, merchants, and homes, have expressed concern over the possible increase of electricity tariffs.
The Ceylon Electricity Board (CEB) made a proposal to the Public Utilities Commission (PUCSL) to increase tariffs on Monday, seeking a 13.56% increase in electricity tariffs for the second quarter from April 1 to June 30.
The government at the moment is in a dilemma, as the cost-reflective tariffs are an IMF condition.
Under the proposed revision, the charge for 0–30 units is expected to increase from Rs. 4.50 to Rs. 5.11 per unit, while the rate for 31–60 units is set to rise from Rs. 8 to Rs. 9.08.
The tariff for 61–90 units, currently Rs. 18.50, is proposed to be increased to Rs. 21.01. For 91–120 units, the existing rate of Rs. 24 is expected to be revised up to Rs. 27.25. The charge for 121–180 units is set to increase from Rs. 41 to Rs. 46.56 per unit.
For consumption exceeding 181 units, the CEB has proposed raising the tariff from Rs. 61 to Rs. 69.27.
Businessmen and domestic users have expressed fears of a higher cost of living.
Those who use electricity to make a living said they would be forced to increase charges.
A small-time garage workshop owner, Adrian Adikaram, 35, said he uses electricity to operate the vehicle hoist and compressor.
“Since I am a small timer, I don’t have much expenses, but normally a garage uses paint sprayers, and electrical items so the expenses could range up to hundreds of thousands.”
Mr Adrian said that since his garage has two employees, their salaries should also be increased to meet the cost of living faced by them. He would be forced to charge more for vehicle repairs.
Large-scale bakers expressed deep concern about costs, as they have to pay more for electrical dough mixers and ovens.
An employee of a large-scale bakery in Slave Island, Arumugam Nadaraja, said that apart from the direct impact of electricity costs, they face labour issues whenever the cost of living increases as a secondary impact.
“The bakery employees who are from provinces complain that they cannot handle the increasing cost of living in Colombo and demand more salary,’’ he said.
Bakery operators would have to raise prices, and when that happens, the business gets affected as sales drop due to the high prices, he said.
The chairman of Ceylon United Business Alliance, Taniya Abeysundara, said small- and medium-scale enterprises (SME) would be severely affected if electricity bills are abruptly increased.
She said production costs increase and ultimately reach the consumer as price increases.
“Business would be affected. We expect the government would support the SMEs to develop and contribute to the economy, believing that the president would not allow industry or the economy to be affected,” she said.
The apparel industry also expressed concerns over reduced productivity as well as the opportunities in foreign markets when production costs rise.
Well-known businesswoman Sandra Wanduragala said the handloom sector of the textile industry needs government assistance, as elderly women are employed.
Ms Wanduragala said factories would be affected, while the cost and resulting price increase would affect exports.
If tariffs are increased, the apparel industry would be badly impacted.
Electricity Users Association General Secretary Sanjeewa Dammika complained that the CEB calls for an increase of the tariff without giving the proper estimates, profits and weather information to the PUCSL.
The CEB is also trying to cover the compensation expenditure of the employees who voluntarily retire by charging more from the consumers, he said.
PUCSL’s Corporate Communications Director, Jayanath Herath, said the CEB proposal has been received and it will be reviewed.
The time frame of the process to consider the tariff increase will be notified by the middle of next week, he said, adding that public views will be heard.
Mr Herath said that according to the existing calculating method of the electricity tariff, such costs could not be included in the tariff. However, they would consider the facts and inform the public of the recent proposal.
In the proposed National Electricity Policy of Sri Lanka made public by the Energy Ministry, plans are made to charge people for electricity consumption of street lights.
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