Hoteliers cry foul over unfair CEB treatment

8 April 2013 03:17 am - 0 - {{hitsCtrl.values.hits}}

A A A

The Hotels Association of Sri Lanka (THASL) has charged the Ceylon Electricity Board (CEB) for singling out the hotels sector and imposing a tariff higher than the normal industry tariff applicable to industrial sector.

According to the retail tariff proposal for 2013 submitted by the CEB to the country’s power regulator for approval in March, the hotel sector has been the hardest hit with highest unit charge per kilowatt hour, above the industrial sector (Refer table).

“We believe, this is a grossly unfair classification and that there is no logic or justification whatsoever of categorizing hotels under a separate tariff category and charging a premier tariff,” charged the Past President of The Hotels Association of Sri Lanka (THASL) Srilal Miththapala.

Making oral representations on the proposed tariff hike to the Public Utilities Commission of Sri Lanka (PUCSL), he questioned under what grounds the authorities could consider the hotel sector was immune to electricity tariff hike.

“Hence just because hotels are perceived to be high-end electricity users, it is wrong to charge us a higher than normal, punitive tariff”, he remarked.

At a time when the luxury hotels are witnessing a downhill in occupancy with vast majority of tourists opting for low-end hotels, the proposed tariff hike will be nothing but a burden that can further squeeze the industry margins.

“The proposed peak tariff increase for hotels indicate a very steep increase without any justification whatsoever.

When the ‘time of use’ tariff was introduced a few years ago, most hotels undertook in-depth load analysis and removed all non-essential loads from peak time use period,” he pointed out.

Miththapala thus urged the authorities to suspend this peak tariff increase until a clear justification is available. He further pointed out that hotels will find it extremely difficult to re-adjust themselves to another peak time charge, because they had already gone through the process.

The proposed tariff revision for 2013 by the CEB demonstrated a clear diversion from the Road-Map 2011-2015 which otherwise would see all non-domestic classes (retail and industry, hotel & general under bulk categories) unified, except in terms of voltage at which the service is provided.

Road Map which is now being abandoned for reasons only known to PUCSL & CEB, was to breakeven the sector in 2014, following a fully cost-reflective pricing by 2015, which is now far from reality.

“More seriously, such ad-hoc changes have major detrimental effect on strategically forecasting new hotel feasibilities, which may now seriously hinder much needed foreign investment to new hotel developments,” said Miththapala requesting an immediate adherence to a clear and transparent cost-reflective tariff methodology, rolled out in a phased out and pre-planned manner over several years.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Hoteliers cry foul over unfair CEB treatment

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Former MP Palitha Thewarapperuma dies from electrocution

Street food vendor arrested for verbally harassing foreigner

SL on alert on possible genocide allegations by Canada

Racing event tragedy leaves seven dead including eight-year-old child

New Visa procedure implemented

Two racing drivers arrested over Fox Hill tragedy

MIRROR CRICKET

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations