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Electricity bills likely to increase

14 Feb 2012 - {{hitsCtrl.values.hits}}

Electricity bills are also likely to increase because the Ceylon Electricity Board (CEB) is unable to absorb Saturday’s massive fuel price increase, the Power and Energy Ministry said yesterday.

Secretary M.M.C. Ferdinando told a media conference the CEB would have to bear an additional Rs.40 billion annually on top of the estimated loss of Rs.30 billion for this year.

“The maximum loss we can manage is around Rs.40 to 50 billion a year. The annual estimated loss for this year is Rs.30 billion. With the recent fuel price hike we will have to incur an additional loss of Rs.40 billion which is impossible for the CEB to absorb. We have submitted these particulars to the Public Utilities Commission of Sri Lanka (PUCSL) to decide whether the electricity rates have increased or to recommend to the Treasury to absorb the additional burden,” Mr. Ferdinando said.

He said it will take a few weeks for the PUCSL to make a decision, as the particulars were only submitted yesterday.

Mr. Ferdinando stressed that even before the fuel price hike the CEB sold power at a huge loss.

In 2010 the CEB’s expenditure was Rs.179.5 billion with a fuel bill of Rs.87 billion while the income was only Rs.146 billion which meant a loss of Rs.32 billion.

The CEB’s estimated expenditure for this year is Rs.219 billion with an estimated loss of Rs.70 billion as a result of the fuel price hike. The PUCSL will have to come up with a tariff hike or if not, a relief formula for the CEB which is not practical, Mr. Ferdinando said. (Sandun A. Jayasekera)

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Electricity bills likely to increase

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