NewsPoor transparency burdens consumers

September 2, 2012

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. – See more at:


source : Sunday, 02 September 2012