BOI enterprises perturbed by proposal to hike tariffs for high consumers

• Point out manufacturers are already facing a “tough time”
• Say OK for reasonable revision but no to three or fourfold increase in tariffs
• Request meeting with Power Minister before any submission to Cabinet 

The proposal to get big-time electricity consumers to pay more was not well-received by the Board of Investment (BOI) companies, which cautioned that any such move would only further exacerbate the crisis situation for businesses.

The Free Trade Zone Manufactures’ Association (FTZMA), the sole trade chamber representing the BOI enterprises, yesterday said it is “perturbed” by the Cabinet proposal by Power Minister Kanchana Wijesekra for an electricity tariff hike for those who consume a high number of units, particularly the manufacturing industries. 
In a letter to Wijesekra this week, the association pointed out that its membership is currently going through a “tough time” in continuing their operation and the difference in the ROE is negatively impacting their business entities, particularly the effect cascades down the entire supply chain.

“As a trade chamber, we are very much conscious of the current predicament of the country and we accept a reasonable revision of tariff is needed, due to the devaluation of the rupee against the US dollar but we cannot agree with three to four folds of our bill as mentioned in the media,” the FTZMA said.

 While welcoming the idea of installing solar PV panels on the rooftops of manufacturing plants, the association highlighted that such power does not harness even half of the required energy. Reasons are the limitation of roof capacities and lack of availability and exorbitantly high cost of solar batteries as a backup system to store energy.
“As per the foregoing, we believe that the intended proposal for an increase in electricity should take into consideration of many aspects, particularly from the foreign direct investment facilitation viewpoint and such revision should match with neighbouring countries or else the cost of manufacturing of local BOI plants will go extremely high and be losing their competitive advantage too,” the FTZMA said.

The association called on Wijesekra to take an “appropriate” decision, one that would avoid destroying the infrastructure and instead, make the environment conducive for the BOI enterprises to continue their operation, thereby being able to support for rebuilding of the country’s economy back on the track. 

The trade chamber requested for a meeting with Wijesekra and relevant officials to discuss the issue before any submission is made to the Cabinet.