President hints of another electricity tariff hike

By Ajith Siriwardana and Yohan Perera

Colombo, April 8 (Daily Mirror) - Claiming that the electricity tariff increase implemented on April 1 was not a result of the current crisis, President Anura Kumara Dissanayake said yesterday the current estimates suggest that losses over the three-month period may reach approximately Rs. 32 billion and that the people will have to bear Rs. 10 billion out of it while the government and the electricity companies will bear the rest of Rs. 22 billion.

Making a special statement in Parliament, he said electricity tariff revision on April 1 was based on projections made on February 1 and that in light of the present situation, loss for the three months is estimated as Rs. 32 billion.

He said the loss is due to low hydro power generation, the rise in fuel prices, use of diesel instead of furnace oil and naphtha, and the shortfall in expected generation from coal due to substandard coal supply.

The President said however, losses caused due to substandard coal will be recovered from the respective companies and that under no circumstances will these costs be passed on to the electricity bills of the people and that it must be absorbed within the national system management framework.

He said the government has decided to provide a subsidy to consumers whose electricity usage is below 90 units in the next electricity tariff revision and that Rs. 5

billion will be allocated per month, amounting to Rs. 15 billion over three months.

He said of the estimated Rs. 32 billion loss, the government will bear Rs. 15 billion, while around Rs. 7 billion may arise from issues related to coal, will be borne by the electricity companies and the Rs. 10 billion will have to be borne by the electricity consumers.

"This is the approach we are taking. If there is a better alternative, we are open to hearing it," he said.