CEB bureaucracy insists on more tariff hikes

By Ifham Nizam

The Ceylon Electricity Board (CEB) would be in a position to put an end to the scheduled routine power cuts if the power tariffs were increased accordingly, a top official said.CEB Chairman Nalinda Illangakoon told The Sunday Island that they have to go for another power hike without further delay.

The CEB Chief said that the Board is in the process of doing the needful with regard to the power hike which is in the pipeline. However, he didn’t want to give the percentage of the hike they are demanding.

In response to the demand for a continuous power supply, he said that they could do so if the unit prices are raised.Power and Energy Minister Kanchana Wijesekera said that CEB would have to go for another tariff hike to cut losses amid high fuel costs and cabinet approval has been sought for six monthly price revisions.

The tariff hike granted by the Electricity sector regulator, Public Utilities Commission in August was not sufficient to cover costs, he said, adding that the Board is still making losses.

“When the CEB said it would cost Rs. 850 billion a year to supply electricity based on the coal, diesel and furnace oil prices in April and revenue was only Rs. 250 billion, the increase was only 250 billion rupees.

“Even that was not made taking into account increasing cost of coal, and fuel. Last January a kilo of coal was Rs. 24. Now it is Rs. 114. Last January a litre of diesel was Rs. 139 now it is Rs. 435”, the Minister said.