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Fixed electricity prices could double after a Cabinet green light expected on Wednesday, to tide the thermal dependant Electricity Board through surging crude costs.
About 60 percent of the country’s electricity generation is run on expensive thermal fuel.
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It costs over Rs. 10 to generate a unit of electricity, though domestic users are subsidised by Rs.
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3.00 a unit.
Domestic, commercial and industrial tariffs are not being raised, but fixed costs in each tariff block will go up, General manager of the Ceylon Electricity Board, Ranjith Fonseka said on Tuesday.
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“It is imperative that we increase prices or we will incur large losses. There is no alternative but to pass this on to consumers,” Fonseka said.
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The Rs. 30 fixed cost for domestic users is likely to go up to Rs.
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60. Fixed charges vary among the different categories.
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Earlier attempts to raise tariffs saw the CEB hauled to court by consumers saying sufficient notice was not given to the public about the proposed price hik