Minister of Energy Kumara Jayakody says there is a possibility for electricity tariffs to increase in the future.
Addressing the media, Minister Kumara Jayakody said drought conditions will affect electricity generation costs, which could lead to a tariff increase.
Clarifying comments on CEB recording profits, he said that the CEB has no profits, but only has costs.
“CEB’s costs are not calculated as profits and loss. There are claims that CEB has recorded a profit of Rs. 140 billion. This is a continuous lie,” he said.
Minister Kumara Jayakody said CEB does not record profits, but only records balances which is used for electricity generation.
“Following a tariff change for 06 months, whatever balance sum remains, the CEB absorbs it for the next 06 months. The CEB’s forecast is based on this absorption system,” he explained.
The minister said this balance sum is spent as electricity generation cost, adding that as such, there is no profit.
“From the Rs. 140 billion recorded last year, only Rs. 46 billion was calculated as the balance. Absorbing this balance sum for the implemented six-month tariff reduction, the CEB will face a cost of Rs. 42 billion during this period,” he said.
The Energy Minister warned that electricity generation costs could increase depending on the prevalent drought conditions. (Islandnews)
The post Electricity tariffs : Possibility of price hike appeared first on Islandnews.
