CEB awaits approval for new tariff hike to bridge revenue loss
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The Ceylon Electricity Board (CEB)’s revenue has come down during the past three months as a result of a power consumption drop following the proposal to impose another 22 per cent electricity tariff hike, official data showed.
According to the CEB’s monthly financial statements the income of the power utility in the months of July, August and September in 2023 has dropped by Rs. 4573 million.
CEB revenue of Rs. 55,163 million in July has dropped to Rs.53,193 in August and it has further come down to Rs.50,590 million in September.
Under this circumstance the board has no option other than to impose a 22 percent tariff hike or levy Rs. 8 from each and every slab of electricity bill payment of consumers, CEB senior engineer Nandika Pathirage told the Business Times.
At present there was no possibility of bridging the power generation cost from Treasury grants or state bank loans, he said adding that they are awaiting the Public Utility
Commission's (PUSL) approval for another tariff hike this month.
The Treasury has already extended support by providing concessional loans to tackle, around 20 per cent of CEB's outstanding debt, debt to equity conversions and taking over certain liabilities, Finance Ministry sources disclosed.
The CEB has to repay Rs. 212 billion as at August to Ceylon Petroleum Corporation (CPC), independent power producers (IPPs) and non-conventional renewable energy (NCRE) producers.
The Treasury will absorb 70 per cent of the CEB dues to the CPC and the IPPs by end-2023 and the board has assured to settle NCREs dues with its monthly earnings, Energy Ministry sources disclosed.