CEB seeks tariff hike; cites Rs. 9.5b interim loss and other costs

By Kapila Bandara

Sri Lanka’s loss-making state power utility, the Ceylon Electricity Board, is seeking an overall 6.8% tariff increase from October to December, citing a laundry list of multi-billion rupee cost increases, including energy and financing costs in the billions and Mahinda Rajapaksa-era debt for the Uma Oya project.

In a detailed submission to the regulator, the Ceylon Electricity Board has asked for a third tariff revision for more than 7.2 million users. The CEB has planned an overhaul of operations, and unions are agitating.

The CEB estimates a deficit of Rs 7.694 billion for the last three months of the year on revenue of Rs 112.372 billion. Total cost is estimated at Rs 125.3 billion, including generation and capacity cost, cost of transmission and distribution, as well as finance costs. Forecast energy cost alone exceeds Rs 68 billion.

The CEB ties the energy cost increase to a forecast increase in power demand. 

Read more at the Sunday Times edition here