Don't burden industry with increased electricity tariff - NCCSL

The National Chamber of Commerce of Sri Lanka (NCCSL) said that the government should not increase the electricity tariff to a level where Sri Lankan products will be uncompetitive in the local and export markets.

The electricity tariff has been continuously increased for the past three years resulting in locally produced products already becoming uncompetitive. Sri Lankan products have to compete with the products manufactured in countries which heavily subsidise industry.

The Chamber whilst appreciating the government's efforts to develop the local industry, infrastructure facilities and providing uninterrupted electricity supply, calls upon the authorities not to increase the electricity further which will result in making our products, especially those manufactured by the small and medium industries totally uncompetitive. Sri Lankan products have already become uncompetitive in the global market due to the high utility bills, taxes and cess levied. The cost of production has sharply gone up leaving a very thin margin.

The National Chamber has proposed to the government on previous occasions to enhance the efficiency of the CEB by minimising transmission losses and restructuring the organisation.

It was observed that many sites that could be used to generate power through mini hydro schemes are unutilised.

During 2005-2007 fixed charges for electricity were increased from Rs. 30 to Rs. 240 for up to 10 KVA and Rs. 230 to Rs. 500 for above 10 KVA for small industries. In the case of large industries the rate has gone up from Rs. 800 in 2005 to Rs. 3,000 in 2007 for consumption over 10 KVA.

The Government should take action against all illicit electricity tappers immediately, as it had become a major practice in many parts of the country.

"We appeal to the Ministers of Industries, Export Development and Enterprise Development to seriously look at the gravity of the situation and stop further increases of electricity tariff at least for another one year and make reasonable increases thereafter.

We propose to the government to restructure the CEB so that it will function effectively and recover all the debts from various government institutions and make those government organisations function efficiently without being a burden to the industry, the private sector and the public.

The private sector should not be taxed to cover wastage by certain government organisations and the time has come to review their performance and make them run effectively by minimising wastage, overheads and administration cost if we are to develop the economy by increased foreign and local investments.