Short Break

The industrial sector will get a tariff-hike holiday in the short term when electricity prices are increased next time, assures Treasury Secretary Dr. P B Jayasundara. The industrial sector will get a tariff-hike holiday in the short term when electricity prices are increased next time, assures Treasury Secretary Dr. P B Jayasundara. The last electricity tariff revision was two years ago in April 2002 and with increased dependency on thermal sources to generate power, a tariff increase is now long overdue.

The Ceylon Electricity Board (CEB) needs a more realistic tariff regime to repay its loans and cover operating expenses, to say nothing of repairs and reinvestments.

At the present average tariff rate of Rs. 7.70, the CEB makes a loss of over Rs. 1.00 depending on the thermal/hydro generation.

Addressing a business meeting organised by the National Chamber of Commerce on Thursday, Jayasundara said that while a tariff increase is due, “in the short term industrial tariffs will not be raised.”

“Tariffs will go up in households, but not the industrial sector,” said Jayasundara.

However, Jayasundara did not commit on when the new tariffs will kic