Sri Lanka’s 60 -65% electricity tariff hike once in two months in accordance with IMF dictated power pricing formula is set to create another energy crisis with long hour power cuts as a result of the clash between the power and energy ministry and the public utilities commission headed by Janaka Ratnayake,official sources said.
Power and Energy Minister Kanchana Wijesekera is expected to issue a statement on electricity tariff revision which has to be introduced in January 2023 today following the deadlock at the end of discussions between the Ceylon Electricity Board (CEB) and the PUCSL yesterday.
The electricity tariff hike has become an urgent need to rescue the CEB from a possible bankruptcy due to its heavy borrowings from banks and billions of rupees due to fuel, and coal imports as well as to private power suppliers.
The Ceylon Electricity Board (CEB) is facing a severe financial crisis with no rupees or dollars to pay oil and coal shipments as its outstanding amounts to key organisations.
These dues include; Ceylon Petroleum Corporation Rs. 112 billion, renewable energy suppliers Rs. 40 billion, rooftop solar providers Rs. 4 billion, private power plants Rs. 80 billion, monthly bank loans interest Rs. 10 billion and Rs. 35 billion for coal payments for February
PUCSL Chairman Janaka Ratnayake who is still against the electricity tariff hike has not given approval for any new cost effective price formula pushing the country not only into another dark period once again but also jeopardizing the government’s commitments made to the IMF to secure US$2.9 bail out loan.
Janaka Ratnyake’s arrogant attitude of not bowing down to pressure of the country’s urgent need of tackling coal shortage and settling the economic crisis with the help of the IMF Extended Fund Facility.
PUCSL’’s blockade of IMF proposed electricity pricing formula will definitely disrupt the government’s plan to rescue the country from a severe economic crisis in the short run a at a time the government is about to settle the coal shortage to run the Norochcholai power plant and the ongoing economic program agreed with the IMF.
Lanka Coal Company says that six shipments must reach Sri Lanka monthly before April during the off-season, and as per the calculations around 12 shipments should have already reached Sri Lankan shores.
The cabinet has given approval for two companies recently to bring down these 12 shipments and the energy ministry is taking measures to expedite the procurement process averting the energy crisis.
A petition filed by the Public Utilities Commission of Sri Lanka (PUCSL) seeking an order on the Ceylon Electricity Board (CEB) to ensure uninterrupted electricity supply during the 2022 GCE Advanced Level examinations, has been rejected by the Court of Appeal.
