“Formula needed for Petroleum and Electricity pricing”
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Although it has been stated that Hydro Power generation capacity is at 80% at present, this is

only sufficient to provide the country’s electricity requirement for 40 days, said Minister Patali

Champika Ranawaka.

Addressing a function in Hanwella yesterday the Minister of Power and Energy said that if

we are to progress as a country we need to come up with a formula to calculate pricing for

petroleum and electricity.

We are in the process of overcoming two of the greatest challenges faced in the power sector,

which is providing electricity to all uninterrupted. The current annual electricity requirement of

the country is 12,000 gw hours. Although the cost per unit for the first 6000 gw. is Rs. 7.00 it

costs Rs. 32.00 for production and distribution of the balance 6000 gw, he added.

The Minister further added that it was not appropriate to increase electricity tariffs by Rs. 5 in

relations to the Rs. 30.00 increase in petroleum prices in the world market.

Ranawaka said that he does not approve of the method of all electricity consumers having to

bear the burden of power consumption, where only a handful of the large scale industrialists

consume a larger position of power. Therefore is suggested that these large scale industrialists

should formulate methods of producing their own power for their requirements.

In order to fulfill the electricity requirement of the country it is necessary to resort to thermal

power generation. However the Ceylon Electricity Board bears a major portion of the losses

incurred without putting the entire burden on the consumer.

Therefore the minister suggested that a formula similar to the one used when increasing bus

fairs and gas prices is needed for electricity billing as well.