The Ministry of Power & Energy has quoted the rise in fuel prices as well as the drought experienced in the year 2011 as the two main reasons for revising the price scheme on existing electricity tariffs.
Secretary to the Ministry of Power & Energy M.M.C Ferdinando made these observations while addressing a media briefing which was held at Temple trees this morning under the patronage of President Mahinda Rajapaksa.
Losses incurred by the CEB owing to cuts in production by 20% & escalating fuel costs rose from 38 billion rupees to 61 billion rupees.
However the new revisions to electricity tariffs would only cover 45 billion rupees.
The Secretary to the Ministry of Power & Energy M.M.C. Ferdinando during this mornings discussions held at Temple trees noted that subsequent to the initiation of thermal power plants in January 2014, there exists a possibility to reduce electricity tariffs by cutting down on the fuel adjustment charge.
The 2nd & 3rd phases of the Norochcholai power plant remain due to be completed during the months of October & December this year.
Upon completion of these phases the Norochcholai power plant will synchronies 300 & 600 megawatts of electricity to the national grid collectively.
Thermal power production which is done utilizing coal only costs 1/3’rd of the production cost which is utilized to produce electricity aided by fuel.
Hence according to the Secretary to the Ministry of Power & Energy this will enable the ministry to wave off the fuel adjustment charge, thus bringing down the cost of electricity tariffs.
Moreover Minister of Power & Energy Pavithra Wanniarachi who was present during the discussion which was held at Temple Trees this morning stated that the general public was only marginally affected by the hike in electricity tariffs.
Advisor to the National Electricity Consumers Movement Bandula Chandrasekara however contends that the consumer is being hassled by the new tariff hike.