Parliamentary Committee recommends 20% cut in Electricity Tariffs

• It was also revealed that more than one million electricity  connections have been cut due to non-payment of bills. The main reason  for the non-payment of bills is the high power tariff
• The Committee also was of the view that customers should be  allowed to pay the connection fee in instalments

By Yohan Perera   

Electricity Tariff should be reduced by at least by 20 per cent within this year, a top parliamentary committee had informed  Ceylon Electricity Board (CEB) and Public Utilities Commission (PUCSL)  officials. 

 
The Sectoral Oversight Committee on Alleviating the Impact  of the Economic Crisis made this recommendation after making an  analytical review of the figures presented by CEB and PUCSL. The  committee has also taken into consideration opinions given by the experts  in the field of power and energy.   

The proposal that has been made by the experts is that power tariffs can be reduced by 33 per cent.   
The officials of the PUCSL informed the Committee that they  could submit the necessary recommendations on reducing electricity tariffs  by the end of the month.   

The Committee gave directives to the relevant institutions  and officials. This included the identification of micro, small and  medium-scale industries that are directly affected by the economic  crisis. It was also recommended that the power and energy industry be  reviewed so that it can bring in more foreign exchange earnings.   

It was also revealed that more than one million electricity  connections have been cut due to non-payment of bills. The main reason  for the non-payment of bills is the high power tariff.   

It was also emphasized that only 50 per cent of the  outstanding payments should be charged initially. Accordingly, the  committee recommended that lines should be reconnected when half of the  due amount is paid. The committee therefore stressed the need for easing  the pressure suffered by the industrialists and households.   
The Committee also was of the view that customers should be  allowed to pay the connection fee in instalments so that  industrialists who start up new businesses will not be discouraged.