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Thursday, 18 April 2013






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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


TL - CEB Transmission Licensee

GL - CEB Generation




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