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Shocking hikes from next month, but CEB will remain in debt trap
View(s):A crippling hike in electricity tariffs possibly from next month will not achieve the desired objective of the Ceylon Electricity Board (CEB) meeting debts of more than Rs. 30 billion to the Ceylon Petroleum Corporation, a senior official said yesterday.
CEB Chairman W. B Ganegala said, “The additional revenue of Rs. 48 billion from the price increase will be sufficient only to cover the increase in the price of furnace oil from April 1.”
Those using up to 30 units are due to face a 53 per cent increase in their bills, from 31 to 60 units a 47 per cent increase, 61 to 90 units a 59 per cent increase and from 91 to 120 units a 54 per cent increase. The price increase, due to come into effect next month, will mostly affect low and middle income groups.
Mr. Ganegala’s remarks come in the wake of a move by the Petroleum Industries Ministry to impose credit limits on institutions which fail to pay up their arrears to the CPC.
Petroleum Industries Minister Anura Priyadharshana Yapa said that in view of the losses incurred by the CPC, it was compelled to cut down credit to state institutions and the CEB was one such institution to which credit facilities would be cut down.
Mr. Ganegala said the CEB on its own would not be able to pay up arrears and would have to depend on the Treasury to bail it out. The CEB proposes to increase electricity rates soon after the approval for it is given by the Public Utilities Commission early next month.
Mr.Ganegala said the CEB would have to work out other measures to improve its finances by the end of the year.
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