Sri Lanka raises power prices

Feb 14, 2012 (LBO) – Sri Lanka’s power regulator has approved surcharges of between 15 to 40 percent on the bills of power users to recover a part of the cost of a steep fuel price increase, an official said. State run Ceylon Electricity Board still received some fuels below market price, PUCSL officials said.

PUCSL was supposed to have increased power prices twice over the last six months but prices were kept down on political directions.

PUCSL said it will take over petroleum price regulation also soon.

Ad hoc state intervention of energy prices have long been a factor in balance of payments crises in the country.

Household customers using less than 30 units have to pay a 25 percent ‘fuel surcharge’, those using between 31 to 60 units 35 percent and those using over 60 units 40 percent, Jayatissa de Costa, chairman of the Public Utilities Commission of Sri Lanka said.

General purpose business customers have charged an extra 25 percent ‘fuel surcharge’, industry 15 percent and hotels, the sector that is going through a boom and making the most profits also only 15 percent.

PUCSL director general Damitha Kumarasinghe said the surcharges will apply only to the tariffs on units o