Electricity price hike final decision next Thursday

By Norman Palihawadana

Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake said yesterday that a final decision on raising electricity tariffs would be made on 28, following consultations with all stakeholders.Ratnayake said that the PUCSL was considering a tariff hike of about 60 percent.

“This is a reasonable increase given that we have not increased tariffs in eight years,” he said.

Ratnayake said the CEB had asked for a higher tariff increase and that without a tariff hike now, the CEB might collapse.

“The price of everything has gone up. A lot of inputs needed for electricity generation has increased, too,” he said.

Ratnayake said the CEB had asked the PUCSL to approve an 82% increase in tariffs for the year 2022 under Section 30 of the Sri Lanka Electricity Act No. 20 of 2009.On Thursday, the Electricity Users’ Association (EUA) asked the PUCSL two more weeks for public consultations on raising electricity tariffs. The time for public consultations ended on 18 July.

The PUCSL Chairman said that while they approve a tariff hike, the CEB must take immediate steps to implement PUCSL recommendations made in 2014.These recommendations would reduce the operating costs of the CEB significantly.

“They are the implementation of a proper agreements to generate and supply electricity from power plants owned by the Ceylon Electricity Board; the implementation of a proper agreement method for electricity transactions between the Transmission and Distribution Divisions (between licensees) of the Ceylon Electricity Board; the introduction of a proper system for keeping separate accounts for the financial activities of the various divisions of the Ceylon Electricity Board (Generation, Transmission and Distribution) and the determination of the subsidy requirements and the introduction of an independent audit system for the process of purchasing electricity,” he said.