Tariff formula for power not possible: Siyambalapitiya

Under the provisions of the Sri Lanka Electricity Act No. 20 of 2009, a tariff formula for power was not possible, Power and Renewable Energy Minister Ranjith Siyambalapitiya said yesterday.

He said electricity consumers ask as to why the government could not introduce a price formula for power but the Ceylon Electricity Board (CEB) must get the approval of the power monitoring body, the Public Utilities Commission of Sri Lanka first (PUCSL) to do that.

“The PUCSL will have to obtain the views of the public, professionals, politicians, policy makers etc before recommending the CEB to go ahead with a price formula for power. It is a long process and has to be handled carefully because this is an extremely sensitive subject,” Minister Siyambalapitiya said.

Minister Siyambalapitiya said the CEB has appointed a committee of professionals and eminent persons to submit a mechanism on how to contain ever rising generation costs of power generation with ever rising fuel prices in the global market. A report is expected soon.

“The CEB is supplying power to three million consumers out of a total of 6 million for less than the generation cost. In power generation, 60% of the total cost is spent on fuel. Therefore, price fluctuation in the global market affects power generation and costs. Therefore, Sri Lanka needs to find a strategy that would minimize generation cost to a controllable level to keep electricity prices at an affordable level while increasing the power generation from renewable and non-fossil fuel sources,” Minister Siyambalapitiya stressed.

Meanwhile, Co-cabinet spokesman Lands and Parliamentary Reform Minister Gayantha Karunatilaka also confirmed yesterday that the government would not introduce a price formula for electricity.