Kanchana insists tariff hike to avoid 8-hour power cut

• Reveals proposal for tariff hike will be submitted to Cabinet on 2 January
• Says anyone against can challenge decision it in courts
• CEB GM Rohan Seneviratne says proposed tariff hike ranging 60% to 65% will help offset costs
• Claims PUCSL did not approve sufficient hike in August
• Minister says three coal shipments in January
• Reveals Indonesian company won bid to supply 12 coal shipments from February

Power and Energy Minister Kanchana Wijesekera

Power and Energy Minister Kanchana Wijesekera yesterday reiterated that the 8-hour-long power cuts predicted by certain Ceylon Electricity Board trade unions will not materialise if the requested power tariff increase is granted for next year.

“We will submit a proposal to the Cabinet of Ministers on 2 January. The price hike will happen legitimately and if anyone is against the decision can challenge it in the Courts,” he said at a joint media briefing yesterday with the CEB General Manager Rohan Seneviratne.

Minister Wijesekera said the cost is based on average rainfall, noting that they still have a forecast for rain next year. 

“If there is more rain next year, we will reduce the price in July,” he added.

CEB General Manager said the proposed tariff hike in January is about 60% to 65% and it will be sought through the Cabinet of Ministers to offset costs.

Seneviratne claimed the electricity regulator, the Public Utilities Commission of Sri Lanka has not given a sufficient increase in the August tariff hike.

Many groups have voiced their objection to the proposal, claiming that it would be unfair to electricity users who had already seen an average 75% hike in electricity tariff across the board in August 2022.

Minister Wijesekera however said there is currently an effective subsidy of about Rs.100 billion to industries and Rs. 120 billion to households. 

The Minister also said that three coal shipments for the Norochcholai Coal Power Plant will arrive in the country on 5, 9, and 16 January.

“We are hoping to unload at least six coal shipments in January and restart a shut-down coal plant after the arrival of a ship on 5 January,” he added. 

Each shipment will bring 60,000 tons of coal and it will be sufficient to run the three 300MW coal plants for 10 days.

Sri Lanka is expecting to get 33 coal ships before monsoons come after April.

Minister Wijesekera said they have also approved the bid tabled by an Indonesian company to supply 12 coal shipments from February.

He said when tenders were opened, the Ministry received nine bids and the Indonesian company made the lowest bid with freight charges, whilst the stocks will be supplied on a 180-day credit.

Minister Wijesekera said the tender was awarded after it was approved by the Attorney General.

The new contract for 720,000MT of coal is to be awarded shortly.

CEB’s General Manager Seneviratne said the existing coal stock is enough to operate two coal plants till 8 January 

“At present, two generators of the Norochcholai Coal Power Plant are functioning with the available stocks. Once we receive the new stocks, all three generators will be operational,” he added.