Chambers hail new electricity tariff formula

Industrial sector to benefit from revised rates:

Channa Bandara Wijekoon

The announcement of a special off-peak tariff for consumers by the Power and Energy Minister has created excitement among the business chambers. Daily News Business spoke to several key persons in the sphere, to seek their observations with regard to the new development.

Hailing the Minister’s initiative, National Chamber of Exporters (NCE) Chairman Sarath de Silva said the ceramic and rubber industries today are in dire straits because of high cost for usage of electricity.

The two industries consume comparatively enormous volumes of power in the production process. In the light of depreciating of the Euro and supplies from China, Vietnam and Malaysia becoming greater, local exporters at present are struggling to have an edge in the marketplace, he said.

“Hard rubber and ceramic items produced locally have a global demand and we must adopt measures to sustain it. At a time like this, the offer made by the Minister to reduce tariff will definitely pump oxygen to the industry, de Silva said. However shifting bulk of operations to night shift in a country with strict labour rules and entitled leave per annum for workers has to be discussed with the Minister to have consensus, he said.

Federation of Chambers of Commerce and Industries of Sri Lanka President Kosala Wickramanayake said, the domestic consumer will be very happy with the tariff reduction offer.

Industries like ceramics and apparel can now shift a percentage of their operations to night shift and derive benefit from this offer, he said. Wickramanayake also suggested, instead of imposing a charge of Rs 15,000 across the board for installing the ‘smart meter’, the domestic consumers be given a concession.

Households could be given a chance to pay in instalments, which could be added to the monthly bill, he said.

National Chamber of Commerce of Sri Lanka President Lal de Alwis told Daily News Business, the Minister’s initiative is a very positive and a workable one.

This move will motivate households, industry and commercial sector alike to look after their own consumption of electricity.

Thus by controlling the consumption, they will be directly contributing to the national grid and can be proud of themselves, he said.

Echoing the suggestion to introduce a special rate for the households for smart meter installations, he said companies and industries (like hotels and apparels) working round the clock could move their operations to off-peak hours and, immensely benefit from this offer.

“With new power projects like Norochcholai adding to the main grid in future, the country also could venture into electric vehicles that will contribute towards a green economy”, he said.