The Cabinet has approved increase in electricity tariffs in two stages in January and June 2023.

The disclosure was made on Tuesday (29) at a meeting of the Sub Committee on Identifying the Short & Medium-Term Programmes, related to Economic Stabilisation of the National Council.

The government increased power tariffs in August this year.

Parliament announced that although the electricity tariffs had been increased in the recent past, the CEB was still running at a loss.

The representatives of the government and private institutions related to the power sector were called before the Committee to obtain proposals for the purpose of solving the issues in the power sector.

In order to cover the current losses of the CEB, electricity tariffs had to be increased by about 70%, the statement issued by Parliament quoted CEB representatives as having said.

The statement quoted Chairman of the Committee, Patali Champika Ranawaka, as having said that if electricity tariffs were increased to cover CEB’s losses, businesses could collapse as a result.

It was also disclosed that the CEB currently owed nearly 650 billion rupees as outstanding debt to various parties including banks and electricity suppliers. The Electricity Board representative stated that out of the amount to be paid, nearly Rs. 35 billion were to be paid to the organisations that supplied renewable energy, and 75 billion rupees are to be paid to Thermal power suppliers. Thus, it expects to pay at least part of what it owes the suppliers from the 50-billion-rupee loan to be received. (SF)