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Implementation of new electricity tariff:
Public Utilities Commission to impose conditions on CEB
The Public Utilities Commission is to impose conditions on the Ceylon
Electricity Board in implementation of the new electricity tariff. This
step would ensure transparency of data on expenditures incurred by the
electricity industry, states Dr. Jayatissa de Costa, in a media release.
Recommendations pertaining to the Consultation on Proposed
Electricity Tariff 2013 is as follows:
The cost estimates for the supply of electricity for the year 2013,
provided by the Ceylon Electricity Board( CEB), to the Public Utilities
Commission of Sri Lanka (PUCSL), was approved after assessments for
prudency and alignment with approved tariff methodology. Consequently,
the Commission took a decision to reduce Rs. 40 billion from initial CEB
cost estimates.
As per Section 30 of the Sri Lanka Electricity Act, No. 20 of 2009,
the Ceylon Electricity Board is required to file its cost estimates
prior to making an adjustment to the existing tariffs with the Public
Utilities Commission. Subsequently, after approval from the Commission
is granted for these revised cost estimates, the Ceylon Electricity
Board has the legal mandate to propose a new revised electricity tariff.
The CEB has prepared its new revised tariff proposal based on the cost
estimates approved by the Commission.
At the public consultation held on April 4, 2013, on the CEB's
proposed electricity tariff for 2013, the Commission drew special
attention to proposals submitted on the subject of reducing costs
pertaining to the supply of electricity. Moreover, the proposals and
recommendations presented during the public consultation highlighted the
importance of ensuring the transparency and fairness of CEB cost
estimates. A summary report on the written and oral submissions made
during the public consultation, would be available on the Commission's
website www.pucsl.gov.lk commencing from April 17.
Among the proposals submitted during the public consultation, the
Commission identified 8 proposals which could be practically implemented
in the short-term, along with the proposed electricity tariff for 2013.
Therefore, along with the implementation of the new tariff for 2013, the
CEB will also be required to satisfy a set of conditions specified by
the Commission as per the views elicited during the public consultation.
These views expressed by the general public during the consultation
phase, reaffirm the need to ensure transparency and fairness in CEB cost
estimates. Therefore, the CEB would be required to satisfy all
conditions pertaining to transparency of its data before the end of this
year. (See table 1)
As per these conditions specified above, the transparency and
fairness of electricity generation costs and data pertaining to the
costs associated with the purchase of electricity would be assured to
all stakeholders in the future. Consequently, as a result, it is hoped
that the costs incurred by the electricity industry in the future would
be kept at a reasonable level. Moreover, in future electricity tariff
revisions, it would be mandatory for these conditions to be satisfied by
the CEB. If future proposals for tariff revision are submitted by the
CEB without satisfying all the above mentioned pre-conditions, these
proposals will be rejected.
Approved Electricity Charges for 2013
As per Government policy, the final decision on the proposed
electricity tariff for 2013 was finalized. The new electricity tariff
for 2013 would come into effect on April 12, along with the conditions
specified above by the Commission. As per Section 30, of the Sri Lanka
Electricity Act No. 20 of 2009, the Ceylon Electricity Board has been
requested by the PUCSL to make public the approved electricity tariff
for 2013. Further, information on the new electricity tariff and charges
could be obtained from the Commission's website www.pucsl.gov.lk .
Electricity Tariffs (effective from 12th April 2013)
The existing Incremental Block Tariff structure is changed to a
Volume Differentiated Tariff structure for Domestic (D-1) and Religious
(R-1) Purpose and General -1 (GP-1) customer categories; where monthly
(30 day) consumption falls within a certain range (block), the relevant
tariffs for that range will be applicable for the entire monthly
consumption. (See table 2)
1 Schools, Hospitals, Vocational Training Institutions and
Universities included which are fully owned by the Government, funded
through the national budget and providing services free of charge to the
general public. Hospitals and schools will be exempted from the fuel
adjustment charge.
(See table 4)
DL1, DL2,
DL3, DL4 - CEB Distribution licensees
DL5 - LECO
TL - CEB Transmission Licensee
GL - CEB Generation
licensee
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