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Wednesday Dec 11, 2024
Thursday, 2 May 2013 00:34 - - {{hitsCtrl.values.hits}}
After keeping the masses in shock for 13 days, President Mahinda Rajapaksa yesterday chose May Day to announce consumer relief on electricity charges, a move the Opposition alleged had resulted from mounting criticism and pressure.
“Electricity tariffs will not be increased for those who use less than 60 units per month,” an apparently fired up President Rajapaksa told the UPFA’s May Day rally in Colombo, which he described as the biggest ever in his life and political career.
In a populist move, the President said concessions will also be granted to households using less than 180 units of electricity a month.
On 18 April, the Public Utilities Commission (PUCSL) shocked the nation when it announced that the CEB had been allowed to increase tariffs by 51.4% or Rs. 67.50 for those using 30 units per month, 46.8% or Rs. 174.15 for those using 60 units, 61.4% or Rs. 428 for those using 90 units.
For those using 120 units per month and 180 units per month the increase was 58.6% (Rs. 1,025) and 40.57% (Rs. 1,520) respectively. The revised rates were to be reflected in the bills reaching consumers by 20 May.
The Government said the hike had been kept minimal and that in spite of the hike, poorer households was enjoying a subsidy of Rs. 25 billion. President Rajapaksa also said if CEB tariffs were not increased the economy would collapse since the state utility provider was saddled with losses of Rs. 61 billion with Rs. 364 billion in payments to be made in 2013.
The Government’s change in position as as confirmed by the President’s declaration yesterday, would mean the Government would have to incur additional costs by providing an extra subsidy and a loss of revenue to the CEB.
Officials said the move comes after considering appeals by affected households as well as fresh review of the CEB cost structure.
