No light for CEB!

Thursday, 16 February 2012 00:03 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

Despite a fuel adjustment charge coming into effect from midnight yesterday, the Ceylon Electricity Board (CEB) will remain in the dark with a whopping Rs.97 billion subsidy from the Government.

The Public Utilities Commission (PUC), while announcing its new fuel adjustment charges, told the media that the CEB expense is projected at Rs. 218 billion for 2012. Out of this, the people are expected pay Rs. 161 billion but Rs. 57 billion will still be left with the Government.

The CEB made a loss of Rs. 53 billion in 2011 and of this the Treasury has already agreed to take on Rs. 40 billion, taking the total subsidy to Rs. 97 billion. However, with the latest unexpected fuel increase an additional Rs. 29 billion will have to be spent by the CEB and of this the Government has agreed to foot Rs. 4 billion, taking the total amount to an electrifying Rs. 101 billion.

The latest fuel adjustment charge is formulated to earn from consumers the Rs. 25 billion extra that will be spent by the CEB to produce thermal power in 2012. The PUC statistics show that the CEB will spend Rs. 64 billion on fuel for thermal power generation this year and Rs. 83 billion to buy power from private mini-hydro operators.

“Either we earn the Rs.25 billion needed for the fuel or we face power cuts,” insisted PUC Chairman Dr. Jayatissa de Costa, pointing out that it was unrealistic to demand that the Government absorb more cost from the fuel expense given that subsidies and other relief measures are being demanded by the public.

Under the new PUC guidelines, the first 30 units will be charged Rs. 22.50 under the fuel adjustment formula. Households consuming 60 units will pay Rs. 80.85 while those using 90 units will pay Rs. 182.40. The largest increase will be for those using 120 units that will have to pay Rs. 434.40 and 180 units that will see Rs. 1010.40 added onto their bill.

Hotels and industries will have to absorb a 15% fuel adjustment charge, while those falling under the general purpose segment will have 25% imposed on them. Religious institutions, public schools, hospitals and street lamps will have no increases made to their current payments.

“Due to the recent fuel price increase the cost of furnace oil purchased by the CEB from the Ceylon Petroleum Corporation increased by 44% and diesel by 37%,” Dr. de Costa stressed, stating that Sri Lanka can only depend on hydro power for 30% of its electricity requirements and requires thermal power to fill the remaining requirements as coal power does not make a sufficient contribution.