ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electrical energy Board is making the second tariff proposal of 2025 to undergo the regulator, Power Minister Kumara Jayakody stated as an Worldwide Financial Fund assessment looms.
The IMF has stated Sri Lanka was breaching a structural benchmark in this system after the regulator reduce tariffs by 20 %, which is more likely to result in losses by the utility and breaching a requirement for electrical energy to be cost-reflective.
Underneath the IMF program, the proposal to revise tariffs in April ought to have been submitted by January. An IMF mission is anticipated in Sri Lanka in April for a assessment.
In the meantime, beneath the final pointers for the electrical energy business, tariffs needed to be revised each three months, Minister Jayakody stated.
“Accordingly, beneath the tariff methodology accepted by the Public Utilities Fee, the tariff revision for the subsequent quarter is to be submitted,” Minister Jayakody instructed parliament Friday, March 14, 2025
“Virtually it takes a while for a tariff proposal to be made.”
For the reason that regulator ordered the tariff reduce from January 18, the primary month’s invoice can be a composite of previous and new tariffs. Solely in March the CEB would know the precise impact of the tariffs as a calendar month.
“In consequence, it is just by the tip of March or mid-April, that it’s attainable to make a full evaluation of the tariff change,” Minister Jayakody.
“After such a broad evaluation, the CEB will make the submission for the second tariff adjustment to the Public Utilities Fee.”
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The CEB additionally made operational losses within the December quarter, on revenues earned earlier than the tariff reduce was made, interim accounts of the utility confirmed.
World gasoline and coal prices nevertheless are coming down because the US Federal Reserve tightens financial coverage, and the greenback strengthens.
The CEB is making the tariff proposal contemplating a number of elements.
These included income that’s coming from the present tariffs, the price of gasoline, rainfall, hydro storage forecasts, generator upkeep, rates of interest, financial projections, anticipated vitality demand, matching to accepted prices and authorities pointers, Minister Jayakody stated. (Colombo/Mar14/2025)
