Power price hike imminent

by Anura Maitipe

The Ceylon Electricity Board (CEB) will be compelled to increase the price per unit of electricity within the next few days due to the soaring oil prices and sharp drop in water levels in reservoirs, Minister of Power and Energy W. D. J. Seneviratne told the Sunday Observer.

Of the requirements of electricity, 65 percent is generated by fuel. Due to the soaring oil price and drop in water levels in the main hydro reservoirs the CEB incurs a loss of Rs 45 million per day.

The CEB is indebted to the tune of Rs. 9.8 billion to State Banks, the Petroleum Corporation and private power suppliers, the minister said. We have no alternative than to increase the unit price for electricity to minimise the CEB's loss, the Minister said.

A special committee has been appointed to prepare a new unit price formula for electricity to ease the burden of the consumer. Following the submission of the committee report the ministry will announce the new price hike and the effective date, he said.

The spill levels of the main hydro reservoirs have dropped sharply during the past two months. The water levels of these reservoirs have dropped sharply and the country's hydro power generation capacity has dropped to the minimum level, he said.