Automatic cost reflective tariff mechanism to supply uninterrupted power – Kanchana

The intention of the recently presented electricity tariff revision was to implement an automatic cost reflective tariff mechanism to  supply uninterrupted power and to recover the current cost of power supply, Power and Energy Minister Kanchana Wijesekara said. He added that the Government has not proposed to recover the past losses of the Ceylon Electricity Board (CEB) from the tariff revision. He tweeted the above, refuting Public Utilities Commission of Sri Lanka Chairman Janaka Rathnayaka’s recent media statement.

The Minister pointed out that the CEB estimates that one unit of electricity would cost Rs.56.90, if uninterrupted power supply is assured in 2023, but the current average tariff is at Rs 29.14.

According to the Minister, the deficit is estimated to be Rs.423.5 billion. There are 6.7 million domestic consumers according to the CEB billing data.

The Minister observed that 1,460,828 consumers, who use less than 30 units, pay Rs. 8 per unit, while 1,683,172 consumers, who use between 30 and 60 units, pay Rs.10 per unit. The highest number of consumers (1,702,515) use between 60 and 90 units and pay Rs.16 per unit. There are 1,559,131 consumers who use 90-180 units and they pay Rs. 50 per unit. About 303,928 consumers, who use more than 180 units pay Rs.75 per unit.

“Lower layers are heavily subsidized and the top layer pays over the average cost of a unit to compensate for a part of the subsidy. The balance subsidy is borne by the Treasury. My personal opinion is that every layer should be Rs 56.90 per unit and a direct cash allowance should be given for low income families,” the Minister commented.