Electricity pricing formula breaches Supreme Court ruling

By W. Siri Ananda-2013-04-28 The latest electricity tariff hike, which has granted over 50% concessionary rates on fuel adjustment charges for the high-end consumers – who would, according to the new pricing formula, be charged only Rs 15.87 per unit, vis a vis Rs 30.60 per unit charged from consumers who use less than 120 units – is in breach of a 2008 Supreme Court ruling that exempted those who use less than 90 units from fuel adjustment charge. The 2008 Supreme Court ruling ordered those who use less than 90 electricity units be exempted and the others be slapped a 30% fuel adjustment charge. Subsequently, a Gazette extraordinaire was issued on 24 October 2008 to that effect. However, 10 days after issuing the Gazette notice, former General Manager of the Ceylon Electricity Board (CEB), Badra Jayaweera, issued another Gazzette, dated 8 November 2008, which provided a 50% discount on the fuel adjustment charges to the luxury consumers operating business franchises such as hotels and other industries. The latest electricity tariff hike, which came to effect from 20 April provides discount that is over 50% for the high-end electricity users vis a vis the average household consumers. According to the latest tariff formula, a 35% fuel adjustment charge is levied on consumers, who use less than 60 units, whereas consumers, who use 483 units are charged only 15%. Accordingly, consumers, who use less than 120 units would be charged Rs 30.60 per unit, while those who use over 483 units will have to pay only Rs 15.87 per unit. According to the Director of Lawyers for Human Rights and Development, Kalyananda Tiranagama, who is planning to petition against the latest tariff hike, the new pricing formula would increase the bills of some 4.6 million electricity consumers in Sri Lanka, who use less than 90 units per month, by a whopping 97.5%.

2013-04-28