Feb 22, 2013 (LBO) – Sri Lanka’s power regulator has trimmed 33 billion rupees or about 12 percent of expenses proposed by the state-run Ceylon Electricity Board in the second step to revising power tariffs. Large volumes of bank loans taken to subsidize energy from mid 2011, which were ultimately accommodated with central bank credit (printed money) pushed Sri Lanka into a balance of payments crisis which sent the rupee falling from 110 to 134 to the US dollar.
The rupee has since appreciated to around 127 to the dollar.
The power regulator said the CEB could now submit tariff revision based on the allowed expenses of 233 billion rupees for 2013.
“Cost estimates filed by the CEB and proposed tariff revisions will be subject to a process of stakeholder c consultation,” the regulator said.
“Public views as well as government policy will be considered before any approval of cost estimates filed by CEB or any revisions to the current electricity tariff.”
The Public Utilities Commission of Sri Lanka said the CEB had submitted estimated cost of 268 billion rupees for 2013 is seeking a tariff hike.
The regulator said in view of better rainfall, it was reducing 22 billion rupees alloca