Latest electricity tariff hike sends shock waves through Sri Lanka

17 February 2023 09:12 am - 9 - {{hitsCtrl.values.hits}}

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Highly resilient apparel sector slams the hike saying it will be detrimental to all sectors of the economy
“Sri Lanka needs to have a tariff that is justified and competitive vis-a-vis our key competitors”- JAAF Secretary General
JAAF says tariff proposed by CEB is based on an overestimation of demand

By Shabiya Ali Ahlam

The move by Sri Lanka’s electricity regulator to approve another tariff hike sent shockwaves across the island nation yesterday, not sparing even the country’s largest gross export earner, the apparel sector.

Highly resilient apparel sector yesterday slammed the move, stressing that the massive hike in electricity tariffs will be detrimental for all sectors of the economy.

The Joint Apparel Association Forum (JAAF) said its members are extremely concerned about the impact of the electricity tariff hike on the export sector and other electricity consumers.

It noted that the tariff proposed by the Ceylon Electricity Board (CEB) is based on an overestimation of demand, which in turn leads to unnecessarily high tariffs being imposed on the consumer.

“Sri Lanka needs to have a tariff that is justified and competitive vis-a-vis our key competitors,” JAAF Secretary General Yohan Lawrence said.

“The revised tariff announcements have disregarded the concerns raised and have increased electricity costs to over US$ 0. 12 per kWh, which is one of the highest among all our key competitors, in a period in which the industry is fighting to retain market share in weak global market conditions,” he added.

During a consultation held with the regulator last week, JAAF had proposed power wheeling and permitting companies to move from Net Plus to Net Metering as two measures that could be implemented to offset the impact of the tariff increase.

“We call on the authorities to allow for these reforms as a matter of urgency. Sri Lanka urgently needs to scale up its renewable energy generation as this will reduce the cost of power to the consumer,” Lawrence said.

As the apparel sector, along with other industries in the country, has already seen a doubling of energy costs in the last year, yesterday’s tariff hike will have a major impact on competitiveness, he cautioned. The Power and Energy Minister yesterday announced that the electricity tariffs would be increased by 66 percent with immediate effect following approval from the Public Utilities Commission.

It also said uninterrupted power supply would be provided for the whole country following the tariff hike. This was the second electricity tariff hike just in a period of six months as the government raised them at an average of 75 percent in August, last year. According to many, the second tariff hike will be unbearable to the average consumer, making electricity a luxury that is becoming increasingly difficult to afford.

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Comments - 9

Sri Friday, 17 February 2023 09:36 AM

Let go back to old days when people lived without any electricity..most of us got it in 1977 or 1980 ..why not try to live with lamps and candle..it is good to save money ..why this time this hyke ?

Gunadasa Friday, 17 February 2023 09:41 AM

Common sense is apparel industry should install solar panels on their factories and save on electricity bills.

Truth Friday, 17 February 2023 10:00 AM

Sri Lanka can never become a manufacturing hub and join the global supply chain with very high costs of electricity and labour.

Jagath Leanage Friday, 17 February 2023 10:18 AM

Not only shock wawaves , we allmost fainted . Wondering how to pay .

Jude Friday, 17 February 2023 11:10 AM

What shock waves!!??? Recently we didn't have electricity water gas fuel Milk powder medicine and the country was declared Bankrupt!!! Shocking!?? Huh!!

Born again Saturday, 18 February 2023 12:05 AM

Cheapest rate of 26 for industries. Poor people of SL are subsidising these big factory owners. Factories consuming over 300 units should be charged the highest rate, only then will they invest in alternatives.

Citizen Saturday, 18 February 2023 06:31 AM

End of Sri Lanka, good bye Sri Lanka. Sooner or later the country will be taken over by another country. Now all rulers should be happy that they sold the country.

D Citizen Saturday, 18 February 2023 01:36 PM

The increase in the rates is not justified. We need to improve our living standards. Going back to oil lamps is not something to be seen as an alternative. Major consumers have installed solar systems and the authorities have not connected them to the grid. This is the realty. There are domestic consumers with solar panels installed who had wait for several months before they were connected to the grid. There are also some who wanted to install bigger inverters than their actual requirements to enable them to export the excess generation to the CEB. However approval was given citing reasons such as the CEB transformers cannot take the extra load. Looking as these cases one can infer the reasons why renewable is not being encouraged by the relevant authorities. The system is manipulated by a handful for personal benefit.

Say no to IMF otherwise country as to become efficient Sunday, 19 February 2023 11:06 PM

JAFF wants IMF loan, but cannot see that it is the IMF blocking for getting credit from Central Bank that caused CEB to charge consumers as it costs them. A lot of sectors in Sri Lanka like farming and apparel are running on borrowed time. They are too inefficient to continue, but relied on government whether it be CEB cheaper than cost electricity, or government buying animal feed paddy at 100 rupee from farmers.

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Latest electricity tariff hike sends shock waves through Sri Lanka

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