Formula to be introduced to increase electricity tariffs

Formula to be introduced to increase electricity tariffs

A pricing formula is to be introduced to increase electricity tariffs from this month, Cabinet Spokesman Bandula Gunawardena said today.

The Minister said that a policy decision was also taken to suspend power cuts with the tariff revision.

Gunawardena said the country cannot move forward without increasing electricity tariffs.

He said that the Government cannot pay for fuel and coal to continue with uninterrupted electricity.

The price formula will be enforced every 6 months, Gunawardena said adding that if there is a reduction in the price of fuel or if there is sufficient rain, then the price of electricity will be reduced.

He said that the Public Utilities Commission (PUCSL) has also been given time till 15th January to propose an alternative to address the issue.

However, until then electricity tariffs will be revised with effect from 1st January 2023.

The Cabinet had approved the proposal to increase the electricity tariff from January 2023.

Minister of Power and Energy Kanchana Wijesekera said earlier that the Cabinet approved a proposal to implement a cost reflective electricity tariff.

“Cabinet approval granted to amend the general policy guidelines for the electricity industry and to implement a cost reflective electricity tariff to be implemented from Jan 2023,” he tweeted.

The PUCSL had said last week that it will not approve the proposed electricity tariff hike.

PUCSL Chairman Janaka Ratnayake said that there was an attempt to increase the electricity tariff by violating the PUCSL Act.

However, he asserted that the PUCSL will not approve the proposed tariff hike.

He said the electricity tariff was increased in August last year and there is no basis for another increase in a short space of time. (Colombo Gazette)




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