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CEB wants to raise tariffs by 82 percent.

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The Public Utilities Commission of Sri Lanka (PUCSL) has been requested by the Ceylon Electricity Board (CEB) to approve an 82 percent rise in prices for 2022.

As a courtesy to consumers, PUCSL Chairman Janaka Ratnayake said the tariff increase shouldn’t be more than 57 percent.

In his media interview today, he added that 3.14 million homes consume fewer than 60 units on a monthly basis.

“There are 3.14 million households that utilize less than 60 units of electricity each month. About half of all residential electricity is consumed in this way. As a result, the Public Utilities Commission of Sri Lanka has advised the Government to give that group of users a subsidy in the amount of Rs. 65 billion.

The Ceylon Electricity Board will be able to avoid a significant increase in charges for the category that consumes less than 60 units per month by offering this subsidy, he said.

Ratnayake continued, “According to the CEB recommendation, the group of consumers who consume less than 30 units will see an increase in their average monthly electricity cost to Rs. 507. For individuals who consume more than 30 units but fewer than 60 units each month, their average monthly payment will rise to Rs. 1488.

The average monthly power bill for customers with less than 30 units can be maintained at 227 rupees as a result of this subsidy, while the average monthly electricity bill for customers with more than 30 units but fewer than 60 units can be maintained at 658 rupees. Although a 138 percent tariff rise has been suggested for the whole residential sector, the PUCSL notes that it should not go above 67 percent.

The CEB has also suggested raising power rates by 189 percent for places of worship and by 61 percent for industrial consumers, in addition to 45 percent increases for general-purpose consumers, 43 percent increases for hotels, and 43 percent increases for government organizations.

According to the proposed rate revision, the CEB intends to raise the average price of an electrical unit by 82 percent, from Rs. 18.14 to Rs. 32.48.

Ratnayake continues, “With this tariff revision, the Ceylon Electricity Board is aiming to generate Rs. 512 billion in annual revenue. The Public Utilities Commission of Sri Lanka does, however, advise against charging more than Rs. 28.14 for an average unit of power. Additionally, we advise the Ceylon Electricity Board to improve efficiency and cut operating costs by 10%, using the money saved to purchase more renewable energy for the system.

In addition, the PUCSL has noted that the Ceylon Electricity Board has not yet complied with the requirements set forth in the 2014 tariff review. These circumstances were:

  1. Implementation of a proper agreement to generate and supply electricity from power plants owned by the Ceylon Electricity Board.
  2. Implementation of a proper agreement method for electricity transactions between the Transmission and Distribution Divisions (between licensees) of the Ceylon Electricity Board.
  3. 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 determining the subsidy requirements.
  4. 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 determining the subsidy requirements.

Additionally, the PUCSL requests that the CEB accept monthly electricity bills in U.S. dollars from businesses that receive their payments in that currency.

The Public Utilities Commission of Sri Lanka’s website includes pertinent information regarding the proposed rate revision (Public Consultation Document).

All parties, including the general public, are invited to submit their ideas and opinions regarding the proposed rate revision by the Sri Lankan Public Utilities Commission.

Up until July 18, 2022, written comments may be sent through email or fax. Information regarding the time and location of the oral public consultation session will be released as soon as it is available. Online support will also be provided during the oral session.

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