Govt. unlikely to agree to ADB power tariffs hike proposal – CEB Chairman

by Ifham Nizam

The Asian Development Bank (ADB) has recommended an increase in electricity tariffs by Rs. 2.50 per unit for a period of three years, but a senior government official ruled out the possibility of rates being pushed up at this point of time.

“I am confident that the government will not allow a tariff increase”, Ceylon Electricity Board (CEB) Chairman, Eng. Vijitha Herath said.

“Our vision is to cut down on thermal power and make the CEB profitable”, he stressed.

“This might take about three years due to delays in projects as a result of the Covid-19 pandemic,” he added. 

However, independent engineers said that the government will have no choice but to go for a price hike though it would not happen in the short-term.

“The government will not favor a rate revision under the prevailing circumstances”, they noted.

The solution is to expedite wind and solar power projects plus the LNG plants, they remarked. 

Solar projects will help to generate more units to meet the increasing day peak, they said. “We need to think out of the box to find solutions to the power problems faced by the country”.

“We should be able to turn around the CEB without any tariff increases by accelerating opting for low cost Renewable Energy projects. The CEB only has to strengthen the transmission and distribution system to accommodate the load generated by the proposed new projects”, they added.