Did Public Utilities Commission of Sri Lanka (PUCSL) reveal this..?
Despite the cost of electricity declining in Sri Lanka in real terms the benefits have not been transferred to the consumers, because of the failure of the regulator to publish the cost structure and make the process of conversion of cost to prices transparent, an energy sector consultant revealed.
“If you look at the cost structure in manufacturing a unit (kWh) of electricity in 2011 it has declined to Rs.14.96 from Rs.16.91 from a year earlier. This has been achieved due to generation capacity cost being lower due to the debt moratorium and lower fuel cost due to Puttalam Power Plant which brought a cost reduction of Rs. 16 billion in 2011 he said.
But my question is whether any one of us as electricity consumers has been informed. Did Public Utilities Commission of Sri Lanka (PUCSL) reveal us?”, questioned Dr. Tilak Siyambalapitiya, Director of Resource Management Associates delivering the key note address at the 9th Annual General Meeting of the Sri Lanka Ceramics and Glass Council last week. The current electricity price structure which was evolved over the years is complicated and even the engineers find it difficult to understand, he said. He alleged that the current confusion in energy pricing is totally ‘purposely made, ad-hoc and irresponsible”.
It is also learnt that the network losses of Sri Lankan electricity supply has been declining and could even be the lowest in South Asia. According to the projections the target network losses of 12.1% (out of the input transmission network – GWh) for the year 2015 is even within the reach. However the benefits have not been transferred to the customer.
He also alleged that electricity subsidies are not transparently compensated and pointed out even the ‘Road Map’ for the next five years which was announced in 2011 with proposed structural changes to the customer tariff to make customers pay what it costs has now been abandoned. He called for an electricity industry based on transparency and economic principles.
“If you look at the cost structure in manufacturing a unit (kWh) of electricity in 2011 it has declined to Rs.14.96 from Rs.16.91 from a year earlier. This has been achieved due to generation capacity cost being lower due to the debt moratorium and lower fuel cost due to Puttalam Power Plant which brought a cost reduction of Rs. 16 billion in 2011 he said.
But my question is whether any one of us as electricity consumers has been informed. Did Public Utilities Commission of Sri Lanka (PUCSL) reveal us?”, questioned Dr. Tilak Siyambalapitiya, Director of Resource Management Associates delivering the key note address at the 9th Annual General Meeting of the Sri Lanka Ceramics and Glass Council last week. The current electricity price structure which was evolved over the years is complicated and even the engineers find it difficult to understand, he said. He alleged that the current confusion in energy pricing is totally ‘purposely made, ad-hoc and irresponsible”.
It is also learnt that the network losses of Sri Lankan electricity supply has been declining and could even be the lowest in South Asia. According to the projections the target network losses of 12.1% (out of the input transmission network – GWh) for the year 2015 is even within the reach. However the benefits have not been transferred to the customer.
He also alleged that electricity subsidies are not transparently compensated and pointed out even the ‘Road Map’ for the next five years which was announced in 2011 with proposed structural changes to the customer tariff to make customers pay what it costs has now been abandoned. He called for an electricity industry based on transparency and economic principles.
Source : The Nation, 02/09/2012
"PUCSL will take steps to reduce Rs. 33 billion from 2013 cost estimates filed by the Ceylon Electricity Board.(This could mean a reduction by Rs 2/kWh on Tariff proposed by CEB cost estimates) If a revision to the present electricity tariff is required by the CEB, these proposed rates should reflect the cut backs suggested by the Commission. Any revisions to the present tariff would also require Commission approval.
ReplyDeleteThe following were identified by the Commission as non-essential expenses of the CEB:
• In cost estimates filed by the CEB, expired power purchase agreements with private power producers were also taken into account. The Commission is of the view that this energy requirement could be covered through generation capacity of existing CEB hydro power plants.
• Based on the generation recorded in January 2013, the generation capacity of hydro power plants in 2013 is expected to be much higher than previous years and therefore a saving could be achieved by the CEB in this aspect.
The Commission is of the view that cutting back on the above identified non-essential generation expenses would result in a saving of Rs. 22 billion to the CEB.
Further, through cutting back on non-essential capital expenditure the CEB could reduce Rs. 5 billion. In addition, around Rs. 6 billion in expenses identified as not relevant to supply of electricity could also be reduced from CEB estimates.
After, reassessment of their expenses based on commission recommendations, the CEB may submit their tariff proposal based on revised expenditure to the Commission.
Any revisions to the present electricity tariff should follow the below mentioned procedure.
• Cost estimates filed by the CEB and proposed tariff revisions will be subject to a process of stakeholder c consultation.
• Public views as well as government policy will be considered before any approval of cost estimates filed by CEB or any revisions to the current electricity tariff.
The Commission shall take steps to ensure that the general public and electricity industry stakeholders are kept informed on the above mentioned procedures at all times"
Please note CEB is not a charitable organization to give subsidy to more than 65% of there consume who consume less than 90 kWh/month and the Decision makers do not allow these prices to be increased to cost based Tariff. If the Governments wants to subsidize these small domestic consumers (costs to supply may be high as Rs. 20/kWh) the Treasury should arrange pay these difference/ losses to CEB. If this is done overall CEB Tariff can be reduced.
http://www.pucsl.gov.lk/english/news/pucsl-will-take-steps-to-reduce-rs-33-billion-from-2013-cost-estimates-filed-by-the-ceylon-electricity-board/
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