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Industries unhappy with massive electricity tariff hike
- Say power regulator has been unreasonable with recently approved electricity tariff hike
- Say PUCSL’s decision is “alarming” and has left manufacturers “dumbfounded”
- Caution some enterprises may face danger of closure with higher cost of production
- Urge Power and Energy Minister to reconsider approval and find a “win-win” situation
The free trade zone manufacturers yesterday called out the Public Utilities Commission of Sri Lanka (PUCSL) for being unjust towards industries by imposing a massive electricity tariff hike this week, a move that worsens the financial stress of the businesses during the current economic turmoil.
The Free Trade Zone Manufacturers’ Association (FTZMA) on behalf of the Board of Investment (BOI) enterprises penned a strongly worded letter to Power and Energy Minister Kanchana Wijesekara, requesting to urgently reconsider the revision that came into effect on August 10.
“…published electricity hike by the PUCSL unreasonably beyond the requested raise by the CEB is a rising concern of the export manufacturing sector, which consumes more electricity.
This is quite alarming and we are dumbfounded by this unprecedented move by the PUCSL, as some of the enterprises might be facing the danger of closure,” said the FTZMA in its letter.
An analysis by the association on the proposed versus approved tariff structure showed that all categories of the industry sector are set to experience the largest hikes.
The incremental cost that comes with the revision would add to the manufacturing cost, resulting in making the ‘Made in Sri Lanka’ products in export markets highly uncompetitive, the FTZMA cautioned.
Moreover, as the small and medium enterprises (SMEs) in category 1-1 being hit hardest by this price hike, they have expressed their concerns regarding the impact on the liquidity position and business survival, the association shared.
“We urge you to revisit and analyse the price structure once again, mind bearing that foreign direct investments (FDIs) are the future lifeline and the backbone of our country’s economy. It is our fervent hope that you would realise the overall impact on our investors, who are seeking a reasonable revision in the price change,” the FTZMA said.
It went on to highlight that as the attractiveness of Sri Lanka for FDIs is evaluated by using many criteria, of which the cost of operation is becoming a significant determinant because of the energy cost, the manufacturers urged for urgent intervention.
In an effort to iron out the issues in this regard, the association has requested for a meeting with the Power and Energy Minister, so a “win-win” situation can be reached, while building mutual respect and retaining the much-needed FDIs within the country.
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