July 06, 2012 (LBO) – Ceylon Electricity Board, Sri Lanka’s state-run power utility is losing 200 million rupees a day, and a ministerial committee is making proposals to fix the energy sector, power minister Champika Ranawaka said. Ministers John Seneviratne (an former power minister), A H M Fowzie (a former petroleum minister) Nimal Siripala de Silva, Anura Yapa and Susil Premajayantha (current petroleum minister) as well as minister Ranawaka are in committee.
“We are hoping to give a set of proposals next week to the government via the Treasury,” Ranawaka said.
“A Cabinet subcommittee has been formed to look at this and make proposals for the entire energy sector, to deal with fluctuations in oil prices,” Ranawaka told reporters.
Sri Lanka does not have a transparent, cost-based. automatic pricing formula for petroleum to prevent arbitrary pricing from damaging the economy and the people.
The power sector has a regulator, the Public Utilities Commission (PUC), which is supposed to adjust prices at the beginning of each year, or even in the middle of the year if there is a shock to the system.
But last year the Public Utilities Commission was overridden by a political deci