By Chrishanthi Christopher  Religious institutions and charity homes reeling from higher electricity tariffs were in for another shock with the announcement of a 2.5% social security contribution levy, effective October 1. The levy, under the Social Security Act will mean customers of the Ceylon Electricity Board (CEB) have to pay an additional 2.5% on their [...]

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Care homes flattened by six-figure electricity charges

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By Chrishanthi Christopher 

Religious institutions and charity homes reeling from higher electricity tariffs were in for another shock with the announcement of a 2.5% social security contribution levy, effective October 1.

The levy, under the Social Security Act will mean customers of the Ceylon Electricity Board (CEB) have to pay an additional 2.5% on their bills.  The tax will apply to all.

Elders home in Moratuwa. Pic by Indika Handuwala

Several charity homes including homes for the elderly, orphanages and homes for the less-abled and the destitute, said that increases in electricity and water charges have pushed them to the edge. They are seeking support from new donors.

A response had not been forthcoming to appeals to the department and the Power and Energy Ministry seeking a concession, they said.

However, they said people in their care cannot be neglected.

Sri Lankadhara, a non-governmental organisation in Colombo 6, which houses a children’s home, a home for the elderly, and an infants’ home with an elderly daycare centre and pre-school, said bills have increased. The matron of the children home that houses around 37 destitute children said that the electricity bill which was around Rs. 15,000, has increased five-fold.

Gokulam children’s home in Wattala which houses around 50 orphans and destitute children, said, “the bills are high. We cannot manage.’’

“Our monthly bills which were around Rs. 20,000 has gone up to Rs. 100,000.’’

Although the Public Utilities Commission of Sri Lanka had sent out a directive that religious institutions and charity homes be grouped under the general purpose category, under which they pay Rs. 32 for a unit of electricity, the Ceylon Electricity Board has hitherto ignored the call.

Private utility’s customers spared the levy

The 2.5% social security contribution levy introduced under the Social Security Act this week will not apply to customers of the private electricity provider, the Lanka Electricity Company (LECO).

The Public Utilities Commission said that according to the agreement between LECO and the CEB, the company cannot levy the contribution.

However, LECO will have to pay the 2.5% levy to the CEB on behalf of the customers. The PUCSL said this is a technical error and LECO must sort it out with the CEB.

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