Apr 27, 2015 (LBO) – Sri Lanka to set up an independent regulatory body to monitor island’s energy institution’s actions and activities and will not give room to pass unreasonable costs to the consumer as it will be scrutinized, a Minister said.
“The marketing establishments would not be able to hide their inefficiencies in the future as every action and activity will be scrutinized by an independent regulatory body,” Champika Ranawaka, Minister of power and energy Sri Lanka said at a forum held Colombo on Monday.
“No longer will those institutions be able to pass unreasonable costs to the consumer.”
He said a cost reflective transparent pricing formulae, based on international market prices will be introduced soon to the local.
In the proposed new formula, consumers would be privy to breakdown of various cost components such as cost of product in the international market, freight and insurance costs, government taxes and marketing margin.
In the past, issues relating to product pricing have arisen due to the absence of a transparent and cost reflective pricing policy and mechanism and politically motivated pricing of petroleum products.
Analysts say in the absence of a regulator, there is no effective and independent mechanism for protecting the interests of consumers by regulating prices as well as quality of products and services, thus necessitating the establishment of an appropriate legal and regulatory framework.