Gas and electricity price hikes likely

1 January 2013 04:17 am Views - {{hitsCtrl.values.hits}} 60 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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An increase in electricity rates is likely in the coming days in the wake of the Ceylon Petroleum Corporation (CPC) increasing the price of fuel, a Public Utilities Commission (PUC) source said yesterday.

A Consumer Affairs Authority (CAA) spokesman said a request by gas companies to increase gas prices was being reviewed by the CAA Price Committee.
The CPC in February increased the price of diesel and furnace oil which is used for thermal power generation. A litre of Lanka Auto Diesel was increased by Rs.31 to Rs.115 while a litre of Lanka Super Diesel was increased by Rs.36 to Rs.142.

Last week the CPC also increased the two varieties of furnace oil used at the combined cycle power plant in Kerawalapitiya and many other thermal power plants.

The Petroleum Industries Ministry spokesman W.P.M.G. Roshan said the CPC incurs a loss of Rs.4,194 million a month for the subsidized supply of fuel to the CEB and other thermal power plants.

A litre of diesel is supplied to the power sector at Rs.115 though it costs the CPC Rs.129 incurring a loss of Rs.14 on a litre.

CEB General Manager Nihal Wickramasuriya said the CEB had sent the Public Utilities Commission details of all expenses that had to be borne by the CEB for power generation, transmission and supply amid the recent fuel price hikes.

“Power and Energy Minister Patali Champika Ranawaka will chair a discussion today to review the impact on the power sector by the price hike on furnace oil. We will subsequently send a report on the furnace oil price hike to the PUC,” Mr. Wickramasuriya said.

Meanwhile, Lakvijaya Coal Power Plant (LCPP) spokesman said Chinese and Sri Lankan engineers yesterday completed the month-long overhaul of the 600 MWs power plant.

“We expect to fire the boilers tomorrow and hope the power generated by LCPP can be added to the national grid before Thursday,” he said.

Power generation at the LCPP was suspended in November to allow for a complete overhaul of the plant which has undergone a series of breakdowns. (Sandun A. Jayasekera)