By: Staff Writer
Colombo (LNW): Minister of Power and Energy, Kanchana Wijesekera, announced that a comprehensive proposal pertaining to the restructuring of the Ceylon Electricity Board (CEB) is scheduled for submission to the Cabinet next week.
SrI Lanka government will be introducing a mechanism immediately for a systematic approach to revise the electricity bill once every six months. Minister of Power and Energy, Kanchana Wijesekera disclosed.
A cost effective electricity tariff formula is to be devised using mathematical models and data processing in consultation with energy experts in the country.
The formula will be a complex one as it has to determine the tariff for several segments of electricity users without any discrimination and reasonable manner taking into account all cost factors in energy generation.
These factors include, fuel prices, cost for a unit of power generation, energy mix, taxes, rupee fluctaions against the dollar, overhead costs , etc.
Minister Wijeskera said that all these factors will be made known to the public along with the fuel formula mechanism after its finalization soon.
The Minister providing additional insights remarked that the Public Utilities Commission had recently approved a revision of electricity tariffs for the Electricity Board.
Consequently, preparations we made to implement an approximate 18% rate adjustment, effective from the 21st of October, with subsequent rate evaluations for the coming months, he added.
This price revision adheres to the government’s policy framework established in conjunction with the International Monetary Fund (IMF).
Pursuant to this framework, no state enterprise is permitted to draw funds from the Treasury to cover its financial losses.
Addressing a prevalent misconception within society, the Minister clarified that the Electricity Board is not confined to revising tariffs only twice a year.
Provisions are in place for tariff adjustments in cases of emergency and the necessary cabinet approval has been secured for this purpose.
“As of today, we are utilizing only 65.81% of the reservoir capacity, a stark contrast to the 84.41% capacity utilization observed by October 22, 2022. This represents a considerable 20% decrease.
Comparatively, the hydroelectricity production from our reservoirs in 2022 reached 5,364 gigawatt hours, a significant decline from 5,639 gigawatt hours in 2021.
By October 22, 2023, the figure stands at 2,893 gigawatt hours, only half of the corresponding output in the preceding years. With a mere 70 days remaining in the year, there is uncertainty regarding our ability to meet these targets.
Consequently, the exploration of alternative measures is imperative to ensure the continued supply of electricity, he said.
