Tuesday, 2 December 2003  
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Reduction in power costs unlikely - Energy Consultant

by Ramani Kangaraarachchi

A reduction in electricity charges cannot be expected in the near future as Sri Lanka is faced with a permanent crisis in relation to power generation and petroleum resources, said Energy Consultant, Dr. Tilak Siyambalapitiya delivering the keynote address at a seminar held on Energy Efficiency in the Ceramic Industry at the auditorium of the Export Development Board, Colombo on Thursday. He said that the average cost of electricity to industry stood at Rs. 2 per kwh in 1985. Today it is Rs. 8 per kwh as a result of delays in implementing important proposals such as forming a regulatory commission, launching new power generating projects and not addressing the critical issues adequately by the authorities.

Elaborating on the difficulties faced by the ceramic industrialists in the country, Dayasiri Warnakulasooriya, Chairman, Midaya Ceramics Co, member Ceramic Advisory Committee of the EDB and Ceramic Council said, that 40 percent of the cost of ceramic products represents energy costs and therefore the industry cannot compete with other foreign competitors such as China and Thailand unless energy efficiency is implemented. Ceramic industrialists said that the regular blackouts taking place due to electricity failures causes heavy losses to the industry and they cannot use gas as an alternative method because there are no facilities to measure the quality of the product. The lack of expertise in energy efficiency is another drawback.

Foreign investors are reluctant to come to Sri Lanka due to labour reforms, and the high cost of raw materials apart from the energy costs.

However, the experts in the industry said that benefits such as energy conservation, quality improvement, increased output and fuel substitution could be achieved through energy efficiency.


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