Feb 13, 2012 (LBO) – Sri Lanka’s state-run Ceylon Electricity Board has asked the regulator for a tariff hike or a fuel surcharge to cover part of an estimated 79 billion rupee loss in 2012, power ministry secretary M M C Ferdinando said. The CEB has budgeted for expenses of 179.05 billion with revenue of 146 billion rupees and a loss of 23 billion rupees for 2012 but a recent fuel hike had pushed up total costs to 218 billion rupees and the projected loss to 79 billion rupees.
“Forty three billion rupees will be absorbed by the Treasury through credit facilities arranged through banks, the balance 30 billion would have to be secured from a tariff revision or fuel adjustment surcharge,” Ferdinando told reporters.
“Now the matter is under consideration from the Public Utilities Commission.”
Unlike in fuel, where there is no cost based automatic price formula, the Public Utilities Commission of Sri Lanka (PUCSL), which is supposed to be independent should have directed the CEB to have raise tariffs at least twice over the last 12 months.
But tariff revisions were put off on political direction.
Even earlier, a tariff revision plan devised by an expert committee was summarily set aside. If the independent regulator