Electricity bill revision drags Sri Lankans into misery again

Following the increase of electricity tariff by an average of 75 per cent since August 2022 after eight years since 2014 and thereafter revising it in February 2023 by 66 per cent, the Ceylon Electricity Board (CEB) is to review it again on July 1.

Power and Energy Minister Kanchana Wijesekera announced that the proposal of the Ceylon Electricity Board (CEB) to revise electricity tariffs on July 1 has been handed over to the Public Utilities Commission of Sri Lanka (PUCSL) last week.

While it has suggested the reduction of the average tariff by 3.15 per cent from the existing tariff, the CEB anticipates a surplus of Rs. 20 billion if the present tariff system is implemented from July to December in 2023 based on the cost and revenue analysis.

Though there was a drop in the tariff hike, consumers complained adding that that it was not a relief for the present economic difficulty.

All these electricity tariffs were revised in accordance with the costreflective pricing formula in line with the structural benchmarks of the IMF stipulated under economic reforms programme, Power and Energy Ministry sources confirmed.

Sri Lanka’s national average price of electricity, at present is Rs 30.13 per unit, which is closer to the costs approved by PUCSL and included in electricity prices announced in August 2022.

However the costs of the second half of 2022 of Rs 48.45 per unit, published by PUCSL, would not be covered by charging the present price of Rs. 30.13 per unit, an energy expert Dr. Tilak Siyambalapitiya pointed out.

Under this set up, the cost reflective pricing formula is flawed due to unrealistic power generation costs of CEB, several energy experts told the Business Times adding that the Ministry should divulge electricity tariff formula and its fixed and variable factors or components and the system of calculations in a transparent manner.

Otherwise there would be public agitation and protest campaigns will reoccur disrupting the country’s social economic stability, they warned pointing out that the government’s responsibility is to justify any tariff hike with facts and figures.

Minister Wijesekera noted that the CEB has taken into consideration the actual generation data, the actual price of inputs, the generation mix and the forecast for 2023 in fixing the electricity tariff without giving details of the formula.

There would be public agitation and protest campaigns will reoccur disrupting the country’s social economic stability, they warned pointing out that the government’s responsibility is to justify any tariff hike with facts and figures.