Proposed power tariffs increase put off for next week

By Ifham Nizam

The proposed increase in electricity tariffs has been postponed until next week by the Cabinet- of-Ministers, yesterday, amidst protests.

Power and Energy Minister Kanchana Wijesekera yesterday said that the matter would be taken up by the Cabinet-of-Ministers next Monday.

He also said that the CEB makes operating profits due to an increase in hydropower generation and it is not due to the tariff adjustments done in August.

Minister Wjiesekera has said in a message that the proposed Electricity tariff revision was discussed at the Cabinet meeting on Monday.

He said that he had briefed the ministers on the requirements, proposed tariff structure, energy forecast and finances. “The decision was extended by one week for the Cabinet-of-Ministers to make their observations on the proposal,” he said.

Since the last electricity tariff hike in August, the Power and Energy Ministry has justified the proposal for another tariff hike on the grounds that even at the current tariff level, the CEB will still incur a loss of approximately Rs. 287 billion in 2023. The hike is also necessary if the CEB is to provide power, in 2023, without imposing power cuts, according to the proposal.

However, the Chairman of the Public Utilities Commission of Sri Lanka (PUCSL) has come out strongly against moves to impose yet another tariff hike.

PUCSL Chairman Janaka Ratnayake insisted that the regulator is not bound to follow any Cabinet directive, instructing it to approve the CEB’s request for a tariff hike.