Minister says electricity tariff hikes inevitable in face of mounting losses

Power and Energy Minister Kanchana Wijesekara told Parliament yesterday electricity tariffs would have to be increased again as the Ceylon Electricity Board (CEB) was incurring a loss of Rs. 423 billion even after the recent tariff revision.

The generation cost at present was Rs. 889 billion and the recent tariff hikes had helpe rake in only Rs. 400 billion, the Minister said.He said the CEB was spending Rs. 56.90 per unit as generation cost whereas only Rs. 29 was levied from the consumers.

The Minister accused PUCSL of not presenting a generation plan and said it was the duty of the commission to prepare a generation plan and to see that it is implemented.

He said if the PUCSL had increased electricity tariffs to cover the generation cost from 2013, people would not have undergone huge tariff hikes at once.He said the Ministry presented a Cabinet Paper last week to allow PUCSL to revise electricity tariffs in January and July every year.