Cabinet to take up proposed increase of electricity tariffs next week

The ongoing proposed increase of electricity tariffs has been postponed until next week by the Cabinet of Ministers yesterday amidst a string of campaigns against such proposals.

“Proposed Electricity tariff revision was discussed at the Cabinet meeting held today (2). Briefed the ministers on the requirements, proposed tariff structure, energy forecast & finances. One week was extended for the cabinet of ministers for their observations on the proposals,” Minister of Energy Kanchana Wijesekara said in a tweet on his Twitter handle. 

Accordingly, the Cabinet is scheduled to take up the revised rates for discussions next Tuesday. 

Meanwhile a signature campaign for a petition calling the government to stop the proposed increases was launched in the Southern province last on last Sunday and is due to continue today. More than 10,000 signatures were collected.

 The main opposition parties also have stepped up their campaign against the increase claiming that it was poor and would be affected.

According to the proposal to be taken at the Cabinet, consumers who use between 0-30 units will see their unit price increase from Rs. 8 to Rs. 30 while those in the 31-60 unit range will see an increase from Rs. 10 to Rs. 37. Consumers using between 61-91 units too will have to pay more, with the unit price increasing from Rs. 16 to Rs. 42. There will be no increases for consumers in categories above 91 units.

Fixed price increases too will be high, with consumers in the 0-30 unit category seeing an increase from Rs. 120 to Rs. 400. Those in the 31-60 unit range will see their fixed charges going up from Rs. 240 to Rs. 550 while those using between 61-91 units will see the fixed charge increase from Rs. 360 to Rs. 650. Consumers in the 91-120 unit range and 120-180 unit range will see fixed price increases from Rs. 960 to Rs. 1500. Consumers using more than 181 units will see an increase in fixed charges from Rs. 1500 to Rs. 2000.

Though it has only been four months since the last electricity tariff hike in August, the Power and Energy Ministry has justified the proposal for another tariff hike on the grounds that even at the current tariff level, the CEB will still incur a loss of approximately Rs. 287 billion in 2023. The hike is also necessary if the CEB is to provide power in 2023 without imposing power cuts, according to the proposal.

However, the Chairman of the Public Utilities Committee of Sri Lanka (PUCSL)  has come out strongly against moves to impose yet another tariff hike. PUCSL Chairman Janaka Ratnayake insisted that the regulator is not bound to follow any Cabinet directive instructing it to approve the CEB’s request for a tariff hike.