News
Business powerless over electricity tab that inevitably seeps into homes
View(s):By Kasun Warakapitiya
Despite government claims that the recent electricity tariff increase would only affect high end consumers and businesses, factory owners and service providers, the repercussions are being felt by people who now have to pay more for goods and services.
Electricity costs will inevitably be passed on to consumers by merchants and service providers.
Eateries and food outlets have increased charges as they use electricity to illuminate shops, keep food warm, maintain coolers and refrigerators.
Bakery owners say with the next increase they would be forced to increase prices further, but fear losing customers
They had been able only to increase food prices and slightly increase service charges to cover costs.
Bakery operators said that the business became more challenging. Bakery equipment consume several hundred units of power.
Arumugam Natraja, a manager of a bakery at Slave Island, said: “Already the baker’s employees want their daily wages to be increased by Rs 1,500, while the bakers ask for a Rs 5,000 raise claiming that they should be paid more as their daily expenses have increased.”
He said the price of a bun was increased to Rs 70, and a pastry to Rs 140.
“With the next increase we would be forced to increase prices further, but we will lose customers. Nobody would buy a plain bun for Rs 100.’’
Stationery shops as well as communications services operators lamented that they find it very difficult to maintain profit margins when expenses are very high.
Higher tariffs directly affect them when they use machinery. They expressed concern over retaining customers, while covering the additional electricity costs.
An owner of a bookshop at Wellampitiya, Malindu Jayasekara, told the Sunday Times that he was forced to absorb the higher electricity cost.
He said he maintains the photocopy charge to keep his customers. “However, I charge more for digital prints because somehow I have to make a profit,’’ he said.
According to him, many bookshops and communications services providers could close down.
Vehicle checkups, body work and paint work also have all become costlier.
Some garage operators have been paying only a part of the bill and arrears are adding up. They said that the electricity bill sometimes exceeds earnings.
Owner of a garage in Colombo, Indika de Silva said: “Actually, after the Sinhala Tamil New Year season there was fewer vehicle repairs done at my garage. But the electricity bill had increased. I plan to increase service charges.’’
He has to raise the salaries of four employees. They had asked for a raise due to the higher cost of living.
A tyre service shop operator, Asanka Indunil, said that electronic equipment used to repair tyres use a lot of electricity and the bill has increased.
“My customers are both trishaw drivers and motorcyclists. They also have their own hardships, so I cannot increase prices by a huge amount. But if I do not raise charges I would be forced to close my shop,’’ he said.
He has decided to slightly increase charges to bear a portion of the losses and remain in business.
Saman Perera, a small time electrical item repairman, who also runs a small vehicle battery charging station at his house in Wattala, said his Rs 16,000 monthly electricity bill is now Rs 20,000 due to the previous tariff increase. And with an 18% increase, he fears bigger costs.
“I use 300 units for my business. We hope the Government will give us concessions or provide some incentive to set up a rooftop solar power system,’’ he said.
Pharmacy owners too, who use airconditioning to keep drugs are bemoaning the costs.
Mansook Mohomad, a pharmacy operator for 16 years, said the electricity bill has risen from Rs 14,000 to Rs 45,000.
He said despite the cost, he can only keep a 15% profit margin from drugs and also must maintain controlled prices.
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