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| Sunday, 4 September 2005 |
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Rationalise energy and fuel consumption - Minister by Gamini Warushamana Crude oil prices hit a new record of $71 per barrel last week in the international market and fears loom that the price will pass the $80 in the near future, but the authorities are reluctant to call for a nation-wide campaign to curb consumption. Minister of Power and Energy Susil Premajayanth told the Sunday Observer that people should reduce energy consumption as the government will not enforce restrictions on fuel and energy consumption. Energy Conservation Fund (ECF) chairman A. M. Warnakulasuriya said that there is no plan still for a nation-wide campaign to conserve energy and fuel. Many countries in Asia took measures to check fuel consumption, and Thailand took this decision when crude oil prices reached $ 50. China imposed power cuts in June. In this context Sri Lankan consumers are still privileged to use fuel and energy as they wish despite the increase in price. ECF has a long term plan for energy saving but the country needs urgent measures to face this situation. Economist and senior lecturer of the University of Colombo Dr. Lalithasiri Gunaruwan said that at present all energy saving methods should be implemented. "Even a power cut will be less damaging to the economy, because macro economic implications of high oil price are worse. It affects the balance of payments, brings pressure on exchange rates, inflation and so on", he said. Increasing petrol prices to a very high level and reducing diesel prices, encourages people to use public transport, especially train services. Imposing high rates on luxury users of electricity and enforcing a tax on private vehicles entering the Colombo city are possible options and many countries have already introduced similar methods, Dr. Gunaruwan said. According to the ECF the normal generation mix of the Ceylon Electricity Board is 50% hydro and 50% thermal. But today hydro generation has dropped to 30-35% and therefore 65-70% of electricity is generated from thermal power. The country can save a large amount of foreign exchange by reducing electricity consumption alone. According to the ECF households, industrial and commercial sectors are energy inefficient and waste energy. The household sectors are 10% energy inefficient while the industrial and commercial sectors are 25-30% energy inefficient. A household survey conducted by the ECF revealed that 25% of households are using energy saving methods, another 25% are now adjusting their consumption patterns and 50% don't consider energy saving. In this scenario some households whose monthly income is around Rs.20,000, pay Rs. 600-700 on electricity while households with a monthly income of Rs.6,000 pay Rs.2,000 on electricity. People should use electricity in keeping with their income and should cut down on waste", Warnakulasuriya said. However, energy saving in the industrial sector is a difficult task because industrial establishments have to invest a large amount of money to replace less energy consuming modern technology. The industrial sector does not waste energy because it increases their cost of production. The Ministry of Power and Energy and the ECF initiated a program to assist the industrial sector to invest on energy saving new technology. ECF has negotiated with the Japan Bank for International Cooperation (JBIC) to provide loans at concessional rates and with a 75% ECF guarantee. These funds will be given to commercial banks and they will provide loans for bulk users of electricity. |
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