Ceylon Electricity Board to increase electricity tariff after eight years

The state-owned Ceylon Electricity Board (CEB) is likely to increase the electricity tariffs after eight years with the consent of the cabinet of ministers today (Monday June 5), CEB sources said.

The Public Utilities Commission has submitted the proposed electricity tariff structure to the Treasury for observations on providing a subsidy.     

The CEB is now losing Rs. 13 per unit and a tariff increase has been sought to raise Rs. 14 billion in extra revenues, the relevant Treasury memorandum indicated.

For the lowest category the per unit rate of Rs.5.50 had been proposed from the current Rs. 2.50 and the fixed fee will go up to Rs. 290 from Rs. 30.

According to the memorandum the electricity tariff for factories will be increased by 38 per cent, hotels 23 per cent and state institutions 22 per cent.

The CEB is on the verge of collapse and it was trying to obtain an overdraft from a state bank to pay employees’ wages, CEB sources said.

CEB Chairman M.M.C. Ferdinando noted that there was an urgent need to increase the electricity tariffs as the CEB was now struggling to pay the salaries of its employees.

“It has been observed the CEB is currently incurring a loss of over Rs. 300 billion per year as its expenditure had now increased to over Rs. 500 billion, while revenue is around Rs. 200 billion,” he has said. (Bandula)