With off-peak system:

Electricity tariff to be reduced from January - Minister Ranawaka

By Ananda KANNANGARA

Power and Energy Minister Patali Champika Ranawaka had his early education at Takshila College, Horana. An electrical engineer by profession, he graduated from the University of Moratuwa. After his university career he was attached to the Ceylon Electricity Board before entering active politics. He began his political career during the latter part of 2004 and entered the Parliament subsequently. He was appointed Minister of Environment and Natural Resources and was re-elected to Parliament from the Colombo District in the 2010 General Election.

Power and Energy Minister Patali Champika Ranawaka in an interview with the 'Sunday Observer' said that the electricity consumers in the country will get a reduction of tariff from January 2011 with the implemention of the new "off-peak tariff system", by introducing `Smart Metres'.

He said this new tariff system will benefit only those who consume electricity during the period between 9.30 pm and 4.30 am. According to the new system the peak- hours are between 6.30 pm and 9.30 pm. and the consumers will not get any reduction of tariff during this period.

The Minister also said under the new "off-peak hour system" which is to be introduced in Sri Lanka for the first time, the charges on electricity for industrial, commercial and domestic consumption will be substantially reduced if the consumers adhere to the guidelines laid by Ceylon Electricity Board (CEB).

"Under the new off-peak tariff, the large, medium and small scale industrialists could shift the bulk of their operations to night shift in order to cut production losses", the minister said.

He said the new system would be initially implemented as a pilot project under the a direction of a committee to be appointed shortly.

"The Smart Metres will be manufactured in Sri Lanka with technology from China, Korea, Japan, Australia and Israel."

Minister Ranawaka further said that the large scale electricity consumers such as Water Supply and Drainage Board, ice manufacturers, pumping stations, printing companies, bakery owners, electric vehicle owners and the hotels with central air conditioning systems could shift their peak time loads to off-peak hours.

Asked about the CEB, the Minister said although a heavy loss of Rs. 40 billion is being incurred by the CEB at the moment, electricity charges would not be increased in the interest of over 4.2 million electricity consumers in the country.

He said the Government is always of the view that it should provide relief to electricity consumers rather than earn profits.

"That's why the CEB has taken a policy decision to sell an electricity unit for Rs. 12.94 when its actual cost has risen to Rs. 17.51."

Quoting statistics, Minister Ranawaka said during the first five months of the current year, the CEB recorded a revenue of Rs 119 billion as against the total expenditure of Rs. 159 billion.

The Minister favoured the construction of hydro and coal power plants rather than thermal power in the future to pass more benefits to the consumers.

He said monthly electricity charges could be further reduced with the commissioning of only hydro and coal power plants and not high cost thermal power plants which are operated on diesel.

The CEB made high profits until 1997 due to 98 percent of the country's electricity being generated by hydro power, he said.

He said hydro power is the cheapest given the number of waterfalls being harnessed to generate electricity in the country.

"But, we have to construct low cost coal power plants to be used during severe drought situations."

The Minister also said steps have been taken to popularise solar and wind power plants. Moves are afoot to sell low cost solar power plants so that the consumers could sell, their excess MVs for the national grid.

The Minister also referred to the development of small hydro power projects in rural areas and provision of financial assistance to the owners of such projects to expand them to generate more power.

He also said 85 percent of the people in the country use electricity. Steps would be taken to provide electricity to all households before end of 2012 under the CEB's `Vidulamu Lanka' program.

Under this program a large number of households in the Northern and the Eastern Districts will be benefitted.

Asked about the future power plants, the Minister said the second phase of the Norochcholai, Sampur, Upper Kotmale, Randenigala, Broden and Ginganga projects would be launched within the next few years.

Speaking on power piracy, the Minister said that special teams have been deployed to crack down on power pirates and the raids conducted in the recent past were very successful.

He also called upon the general public to extend their cooperation to the authorities to crack down on power pirates.