Industries worry over electricity tariff increases

The new electricity tariffs pertaining mostly to households were announced on Thursday by the Ceylon Electricity Board (CEB). The fixed rate below 30 units remains unchanged at Rs.3 but the rates above 30 units have been increased across the board. The CEB has also removed the Rs.2 concession given to industries and has yet to rework the increases as far as the industrial sector is concerned. The President of one of the leading chambers in the country said that the CEB still has to revise the figures to reduce the maximum demand charge and the fuel surcharge. He added that he expects the revised charges to be announced sometime next week.

General Manager of the CEB, Rajith Pulleperuma told The Sunday Times FT this week that meetings have been held with the chambers and the industries but would not discuss specifics. "There have been certain meetings where the industry doesn't want the level increased as what was last gazzetted but the Cabinet has to be appraised." Pulleperuma said the increases will go ahead. "The CEB wants to have an increase and the Ministry wants to have an increase." The only question which remains is by how much.

Despite intense protests from the leading business chambers and industries in the country, Pulleperuma said the electricity charges will be increased. The only question which remains is by how much. "The increases will go ahead," he said. "The CEB wants to have an increase and the Ministry wants to have an increase."

Pulleperuma said the CEB has also received around 70 responses to the public notices on the proposed electricity increases. "We have recommended certain differences of tariff submissions made to the Ministry committee."

It was reported last week that at a meeting organized by the National Council for Economic Development (NCED), CEB and Ministry officials met with industry heads and the leading chambers in the country to discuss the impending hikes. The industries are urging the CEB to recalculate the proposed increases, saying that it would ruin businesses, particularly small and medium enterprises, if the gazzetted increases were to go into effect. The CEB was also asked to revisit the charges and come up with a more reasonable proposal because the competitiveness of businesses will be affected, particularly for exporters and high energy consuming industries.