The Ceylon Electricity Board (CEB) General Employees’ Union has issued a stark warning about the financial ramifications of the recent electricity tariff revision, stating that the board faces significant losses from every unit of electricity supplied under the new pricing scheme.
Union Chairman Malaka Wickramasinghe elaborated on the issue during a media briefing held in Colombo, explaining that the current production cost of a single unit of electricity is approximately 30 rupees. With the revised tariff structure in place, the average selling price per unit has dropped by over 25 rupees, leading to a projected loss of at least five rupees per unit. This pricing gap poses a severe threat to the financial stability of the CEB.
Wickramasinghe expressed grave concerns about the broader implications of the tariff reduction, warning that it could push the CEB into a critical financial crisis. He emphasized that this situation might indirectly impose additional burdens on the public, as the board struggles to maintain its operations and meet financial obligations. The risk of delayed payments to suppliers and interruptions in electricity generation and distribution could significantly impact the reliability of Sri Lanka’s power supply system.
The union further highlighted that the tariff reduction could undermine ongoing efforts to improve the financial viability of the CEB, which has been grappling with losses for years. Despite ongoing discussions about restructuring the CEB to enhance its efficiency, this tariff revision could exacerbate the existing financial strain.
Wickramasinghe also criticized the policy decision behind the tariff reduction, arguing that it prioritizes short-term public relief over the long-term financial health of the electricity sector. He urged policymakers to consider alternative measures to provide financial relief to the public without jeopardizing the operational stability of the CEB.
He concluded by calling for immediate attention to the issue from both the government and the Public Utilities Commission of Sri Lanka (PUCSL), stressing the need for a balanced approach that safeguards the interests of both the public and the energy sector. Wickramasinghe underscored the importance of ensuring that the board can continue to provide uninterrupted electricity supply while maintaining its financial integrity.
