Power and Renewable Energy Minister Ranjith Siyambalapitiya yesterday, debunked speculations about the implementation of a cost-reflective pricing formula for electricity tariff.
“In accordance with the Electricity Act, the introduction of a pricing formula is not practical. If we want to change tariff, we need to get the consent of the Public Utilities Commission. Even if we submit a proposal, the Commission can seek the public’s views and this can be a long process. So there is no way we can implement such a method on our own,” the Minister said.
The Minister said a proposal submitted to the Cabinet to appoint a Committee to find ways to lower power generation cost and control generation cost in the face of fuel price increases has been misinterpreted and misunderstood.
He said the above decision in no way means the government was planning to implement a electricity pricing formula similar to that for fuel.
The minister went on to say that the CEB was one of the institutions which carries a heavy burden due to subsidies given to the public.
He said the number of total electricity consumers in the country were around six million and the CEB was providing electricity for more than half of the total consumers at a price which is half the generation cost.
He said the aim of setting up a Committee was to find ways to reduce the power generation cost and not to increase of tariff.