COLOMBO: Sri Lanka’s state-run power distributor, Ceylon Electricity Board (CEB) has requested the power regulator to approve an end-user tariff to recover the revenue shortfall or a subsidy through the upcoming budget to ensure the financial viability of the sector.
The CEB responding in a letter to a request by the Public Utilities Commission of Sri Lanka (PUCSL) for an End User Tariff proposal for the period October 2016 to March 2017, said the proposed Tariff is solely based on the Revenue deficit of 5%. However, the CEB said it cannot officially submit a Uniform National Tariff (UNT) and it is the Commission that has to calculate the UNT.
CEB said it is unaware of any specific government policy guidelines as to how the tariff increase should be distributed among tariff categories to implement cross subsidies or whether the government is bearing the cost of any subsidy.
Therefore in calculating the UNT, the existing tariff is increased across the board by the percentage deficit (5%) to realize the revenue gap. The CEB said with the 5% increase, there will still be a shortfall of 38 Rs million/month.
“We shall be thankful if you could take early action to approve the final end-user tariff to realize the revenue shortfall or (if the proposed increase is not granted), ensure from the government that the subsidy required will be returned through the forthcoming government budget so that the financial viability of the sector is ensured,” the CEB wrote to the regulator.
