Ceylon Electricity Board (CEB) Chairman Dr. Thilak Siyambalapitiya yesterday said that no revisions in electricity tariff have been recommended at present which has been communicated by the CEB to the Public Utilities Commission of Sri Lanka (PUCSL).
The CEB Chairman said that the next electricity tariff revision has been recommended to PUCSL to be made in six months’ time, emphasising that however, there will be no increase in electricity tariffs in December and January.
He said that the issues regarding the revision of electricity bills were given to the PUCSL and the PUCSL will present its opinion on the electricity tariff system between January 15 and 18.
Speaking at a press conference held at the Information Department yesterday, Siyambalapitiya said that the CEB is trying to reduce electricity costs and that currently, Rs. 31 is being charged for a unit of electricity, whereas in actual terms it costs much more. However, they are trying to minimise this to Rs. 24 per electricity unit and this ongoing effort to reduce the cost of electricity per unit will take some time. He said that even if hydropower is at its maximum level, the CEB needs to look at the remaining requirement.
Elaborating further, the CEB Chairman said:
“Due to the rains received in the last two weeks, hydropower was used. In the future, we are working to reduce costs in our electricity system and bring this sector to a low-cost operation. A large amount of water was received in the reservoirs in late November and December. The Mahaweli Authority has retained water in the reservoirs. But when there is heavy rain, the reservoirs overflow. People ask why oil power plants are used when there is so much water. But oil power plants are used at night. Since there is no sun during the day, it is not possible to generate solar power. Because of this, sometimes oil power plants are needed during the day. We are trying to maintain the electricity price as it is.
“If we can reduce those costs, electricity costs will decrease. Accordingly, we are trying to reduce the amount of electricity in oil power plants and use other fuels instead of diesel. We have also planned to import natural gas. Accordingly, natural gas will be introduced into this country by 2028. We are working to bring in and set up power plants.
Accordingly, it will be possible to reduce electricity costs by 50 percent. For many years, renewable energy has been produced. It has been planned to produce electricity from those sources.
“Solar and wind power plants belong to the private sector. The CEB has to purchase their electricity. We have to bear Rs. 268 billion for previous debts. Electricity revenue is Rs. 239 billion. Accordingly, there is a shortfall of Rs. 39 billion. The CEB has made a huge profit throughout the past year.”
The CEB Chairman further said that the electricity tariffs have been revised in the past and that there has not been a revision since 2014.
The CEB Chairman added that reforms in the electricity sector are being taken forward as electricity tariffs cannot be sustainably reduced without building low-cost power plants for electricity generation and that accordingly, the electricity tariffs can be gradually reduced systematically with time.
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