Rough Ride

Business is booming but the hotels sector is trying to hang on to the good times a little longer, by warding off a looming electricity price hike.
The sector is trying to sidestep a proposed change to the electricity tariff structure that would see their energy costs shoot up by half. rn

rnThe proposed change would move hotels from the current industrial category, to a general-purpose category. rn

rnGeneral-purpose tariffs cover commercial buildings and are slightly higher than industrial tariffs. rn

rnThe price difference between the two tariff blocks is around Rs. 2.00 per unit of electricity. rn

rnUnderstandably, the hotels want nothing to do with a change that would increase their operating costs. rn

rnEven under the current rates electricity is cited as one of the highest overheads of a hotel. rn

rnThe new tariffs, were to kick in last month, but faced with stiff opposition from the hotel sector, the proposal is now being re-evaluated between the Ministries of Tourism and Energy.rn

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