Govt. may be getting ready for another electricity tariff hike: PUCSL chief warns

• Says CEB unable to meet revenue targets due to sharp decline in electricity demand 

By Nishel Fernando

The Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake yesterday warned the public that the government may be preparing for another hike in electricity prices as CEB’s revenue has fallen below the set target due to decline in demand.
“I have received a letter sent by the Treasury Secretary to the Power and Energy Secretary last week copying to me. He has requested the Power and Energy Secretary to inform the CEB to send us a new proposal before May 15th. 
When I read the letter sent by the Treasury Secretary, I felt that we are looking at another upward revision in the electricity bill. I may be wrong. I am just warning the public and everyone,” he said.
Ratnayake   pointed out that the CEB is currently faced with a conundrum as it is unable to reach the government’s revenue targets due to the drop in electricity demand following two sharp upward revisions to electricity tariffs. 
Since the first electricity tariff hike in September, he shared that electricity demand has fallen by 20 percent. As a result, the CEB is faced with Rs.15 billion shortfall in revenue from the targeted Rs.60 billion.
In order to manage its finances with the unanticipated drop in revenue, Ratnayake revealed that CEB last month was forced to take a Rs.15 billion loan from a major bank.
According to him, CEB’s revenue is projected to reach Rs.550 billion, below the government’s target of Rs.700 billion.

Due to declining petroleum and coal prices in the world market, Ratnayake stressed the CEB should at least reduce electricity prices by 25 percent. 
“Since raw materials prices needed for power generation have gone down and Sri Lanka had enough rainfall for this year, we are in a position to reduce the electricity bill by at least 25 percent,” he stressed.
The PUCSL has requested proposals from CEB for a downward revision in electricity prices last month. However, the PUCSL is yet to receive any proposal from the CEB in that regard.