Cabinet green lights electricity hike, PUCSL beams amber

Wednesday, 11 January 2023 00:28 - - {{hitsCtrl.values.hits}}

Cabinet Co-Spokesman and Minister Bandula Gunawardena states upward revision in electricity hike is effective 1 January but admits further discussions are due with PUCSL on the decision
Asserts PUCSL and other parties have time till 15 Feb. to provide alternative proposals
Says proposed cost-reflective formula will be revised every 6 months
PUCSL says no provision in Act for interim tariff adjustment with retrospective effect
Insists factual information on cost of fuel i.e., naphtha, furnace oil and diesel key to determine cost-reflective price mechanism

Power and Energy Minister Kanchana Wijesekera

PUCSL Chairman Janaka Ratnayake

The Government yesterday said the fresh upward revision of electricity tariffs will be effective from 1 January whilst regulator Public Utilities Commission (PUCSL) differed insisting it requires further actions.

“As per the Cabinet paper presented by the Power and Energy Minister Kanchana Wijesekera, new tariffs will be applicable from 1 January,” Cabinet Co-Spokesman and Minister Bandula Gunawardena told journalists yesterday.

On Monday, the Power and Energy Minister confirmed that Cabinet approved amending the general policy guidelines for the electricity industry and implementing a cost-reflective electricity tariff to be implemented from January 2023.

Cabinet Co-Spokesman said although the revisions have been tabled, further discussions will be held with the Public Utilities Commission of Sri Lanka about the matter. “The PUCSL and other parties have been given time till 15 February to provide alternative proposals,” Gunawardena added.

A statement from the Government Information Department said the PUCSL will further study the proposed revision of electricity charges submitted by the Electricity Board and if any revision is required, to submit the same on or before 15.02.2023.

Until then, the CEB and the PUCSL will jointly take necessary measures to implement the electricity tariff revision proposed by the CEB with effect from 01.01.2023 as an interim measure in accordance with the amendments to the Public Policy Guidelines currently in force regarding the Power Industry.

“If the PUCSL submits any amendments, the CEB will take steps to implement those amendments and make the necessary adjustments to future monthly electricity bills,” the statement added.

PUCSL Chairman Janaka Ratnayake said there is no provision in the Act for interim tariff adjustment with retrospective effect. He insisted factual information on cost of fuel i.e., naphtha, furnace oil and diesel key to determine cost-reflective price mechanism. Ratnayake also said as per Cabinet decision further public consultation was necessary.

Gunawardena separately told journalists that the revision comes on the premise that the Ceylon Electricity Board will provide an uninterrupted power supply.

“It was agreed that the cost-reflective electricity tariff formula will be revised every six months. If the prices of coal or fuel reduce in the world market that benefit will be passed on to the electricity users through the cost-reflective formula,” he explained.