Fuel adjustment charges temporary - PUC chief

Rasika SOMARATNE and Disna MUDALIGE

The government's recent decision to add fuel adjustment charges to the electricity tariff was a temporary measure to cover up the additional expenditure that the Ceylon Electricity Board (CEB) has to bear due to the fuel price hike. It would be revised as soon as the world fuel prices drop, Public Utilities Commission (PUC) chairman and President's Counsel Dr Jayatissa de Costa told the Daily News yesterday.

He said that the CPC had raised furnace oil and diesel oil prices supplied to the CEB following the sharp increase in world fuel prices. Dr de Costa said that the CEB has to bear an additional Rs 4 billion for power generation due to the fuel price hike.

"The estimated cost of power generation for 2012 was Rs 25 billion. This is expected to rise to Rs 29 billion. Even though the electricity tariff was increased, the CEB still provides electricity at a concessionary rate without giving the full burden of the actual cost of a unit to the public."

He said that the country's full hydro power capacity was 45 percent.

"The government has paid attention to utilize a maximum capacity of the hydro power to save fuel consumption. However this depends on the rainfall to catchment areas. Another option was a power cut. But this inconveniences public more and it directly affects the local economy. So the PUC had to abandon this option and go for a temporary tariff," he said.