• Electricity tariff may have to be increased if power generation is not cost-effective

Power sector officials pointed out that as the Yugadanavi project is a great investment opportunity for the country, it is necessary to consider the long-term benefits while forgetting the short-term issues in order to take advantage through this investment, a statement from the President’s Media Division (PMD) said.  

The statement said at present, more than 95% of the country's electricity demand is catered, and therefore, low-cost power plants need to be built to meet the people's electricity needs, otherwise, the electricity tariff hike will be unavoidable, officials further said.

They pointed out that it has become an imperative factor that we should transform to intermediate energy sources with new concepts and new technology, as the LNG power generation is a low-cost, environmentally friendly method, the transformation that is to take place through the Yugadanavi power plant is a profitable project for the government as well as for the people of the country.

This was stated by the relevant authorities in the power sector in response to questions raised by journalists at a special media briefing held at the Presidential Media Centre, on Wednesday (03). 
The President's Media Spokesman Kingsley Ratnayake conducted the media briefing under the theme "The Truth about the Yugadanavi Project".

The daily electricity demand is increasing rapidly. The production cost per unit of electricity has increased to Rs. 23 - 24. However, the government provides electricity to consumers at 
Rs. 16.65 per unit, said the Chairman of the Electricity Board M.C. Ferdinando.

The Chairman said that the country had lost many power generation projects that had been under discussion for a long time due to various reasons and it is vital to increase power generation to ensure a uninterrupted power supply.

The success of the Yugadanavi investment project will enable both local and foreign industrialists to consume electricity at a lower cost, Chairman of the Lanka Electricity Company Attorney-at-Law Athula De Silva said.
Electricity Board General Manager M. R. Ranatunga pointed out that 40,000 million units of electricity are required per year to fulfill the total electricity consumption and only by generating this amount at a lower cost, the people will have the opportunity to obtain electricity at concessionary rates.