Public consultation on electricity tariff revisions proposed by CEB
for 2013
The Ceylon Electricity Board (CEB), has estimated that the total
electricity demand for this year would be 10.95 billion KWh.
Consequently, to cover this demand, the CEB has estimated that its
expenses for this year would amount to Rs. 268 billion.
Based on CEB’s own estimates, the per unit cost of electricity would
be Rs. 24.47. In other words, the average per unit cost of supplying
electricity to a consumer is Rs. 24.47. The cost estimates filed by the
CEB require approval from the Public Utilities Commission of Sri Lanka.
The aforementioned cost estimate of Rs.268 billion was assessed by the
Commission, based on the appropriateness (prudency) of the expenditure
and further examined whether it was prepared in line with the approved
tariff methodology.
These assessments revealed that, Rs. 40 billion could be reduced from
CEB cost estimates. Therefore, the Commission has determined that this
year’s electricity demand of approximately 11 billion units, could be
supplied without exceeding Rs.228 billion. Therefore, the Commission was
able to reduce Rs. 40 billion in expenses from CEB cost estimates, which
would have made a direct impact on electricity consumers and Government
electricity subsidies.
As a result of Commission’s regulatory interventions, the per unit
cost of electricity supply has been reduced to Rs. 20.83. Consequently,
the Commission has been able to bring down the per unit cost of
electricity by Rs. 3 and 65 cents, Dr. Jayatissa De Costa, PC, Chairman,
Public Utilities Commission of the Sri Lanka said in a press release.
He further said that last week the Ceylon Electricity Board submitted
revised cost estimates based on the Commission approved cost estimates
of Rs. 228 billion. As of now, the new revised tariff proposal submitted
by the Ceylon Electricity Board has been announced to the general public
and to all stakeholders. Along with this, the Commission has also
published all relevant information pertaining to electricity generation
costs, which has been taken into account by the CEB in its new tariff
proposal.
The Commission is seeking public consultation on the new tariff
proposal submitted by the CEB, to elicit views and suggestions from the
general public and from stakeholders, on the proposed expenses and costs
contained in the new tariff proposal.
When sending in views and suggestions, all stakeholders are requested
to pay attention to the following:
* How the estimated costs of electricity supply for this year of Rs.
228 billion could be reduced further* The applicability of the various
costs identified by the CEB* The relationship between the capital
expenditure required by the CEB and the new tariff proposal submitted by
the CEB* Alternative cost effective tariff proposals to cover this
year’s electricity demand of 11 billion kWh
Therefore, a public consultation is an essential interactive
mechanism to find a solution to reduce the cost of electricity. This
could be achieved through meaningful ideas and views expressed by
experts, general public and interest groups.
The new tariff proposal submitted by the Ceylon Electricity Board and
all information pertaining to this proposal (including relevant
methodologies and calculations), can be accessed from the Commission
website http://www.pucsl.gov.lk/english/information-centre/tariff-revision-2013/
Written correspondence in this regard can be sent through registered
post or through e-mail to [email protected].
When sending in written correspondences, please mention the words
public consultation on electricity tariff revision 2013 on the top left
corner of the envelope or the subject line of the e-mail.
Address: Public Utilities Commission of Sri Lanka, Level 6, BOC
Merchant Tower, 28, St. Michael’s Road, Colombo -03
Further information on public consultation can be obtained by calling
0772701106.
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