Sri Lanka’s CEB proposes tariff increase or subsidy to cover revenue gap

Oct 03, 2016 (LBO) – Sri Lanka’s state-run Ceylon Electricity Board has proposed that the power regulator approves a uniform tariff or a subsidy through the budget to ensure financial viability of the sector.

In a letter to the Public Utilities Commission, the CEB said that in August, PUCSL requested an End User Tariff proposal for the period October 2016 to March 2017 to recover an estimated revenue shortfall of 5 percent.

The CEB however said they cannot officially submit a Uniform National Tariff (UNT) saying it is the Commission that has to calculate the UNT.

Considering the importance of ensuring financial viability of the licensees through a proper tariff, we have submitted a proposal for a consolidated Uniform National Tariff, the CEB said.

“We shall be thankful if you could take early action to approve the final end-user tariff to realize the revenue shortfall,” the letter said.

“If the proposed increase is not granted, ensure from the government that the subsidy required will be returned through the forthcoming government budget.”

The CEB further stated that it is unaware of any specific government policy as to how the tariff increase should be distributed among tariff categories to implement cross subsidies or whether the government is bearing the cost of any subsidy.

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