Immediate electricity tariff reduction not possible: Minister

By Ajith Siriwardana and Yohan Perera  

Energy Minister Kumara Jayakody said yesterday electricity tariffs will not be reduced soon but the government has decided not to increase electricity tariffs further in the future.   

He told Parliament that the Ceylon Electricity Board (CEB) forecasted dry weather in the coming months and hydro power generation will be reduced significantly, which will increase generation cost.   

“I met CEB officials last month. They informed me that dry weather has been forecasted in the coming months and hydro power generation will be reduced significantly. The CEB will have to rely on fuel for power generation at a higher rate,” he said.    The Minister said however, the government has decided not to increase electricity tariffs but to maintain the current rates. “The government will bear the additional generation cost,” he said.   

The Minister in response to a question raised by SJB MP Dayasiri Jayasekara said the Treasury or the government has not absorbed the debt of the Ceylon Electricity Board (CEB) as claimed and that CEB was paying debts of Rs. 332 billion.    “The Treasury or the government has not absorbed the CEB debt. It is a complete lie. The CEB has not gained profits of Rs. 167 billion,” the Minister said and challenged MP Jayasekara to table the document in the House.    MP Jayasekara said he is in possession of the documents that CEB has gained profits of Rs. 167 billion and urged the Minister to reveal the amount of loss if the CEB was making losses.   

“Electricity tariffs have increased by 400 percent in the last few years. The hydro power generation has increased to 56 percent in the recent past,” MP Jayasekara said.    Responding to a question, the Minister said the government never promised electricity tariff reduction within a couple of days but clearly said that steps will be taken to reduce tariffs by 35 percent within three years.    Meanwhile, Chairman of the Committee on Public Finance Dr. Harsha De Silva said the Finance Ministry had reported to the Committee that CEB was profitable in 2024 and said it should be looked into whether the CEB officials had mislead the Minister or the Finance Ministry had mislead the Parliament and the CoPF.