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Electricity prices could go up further if the CEB is unbundled and an independent regulator takes over pricing. But experts say there is little choice but to bite the bullet as the CEB, being used to channel a government sub subsidy, loses nearly Rs.
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3 for every unit of electricity sold.
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That's a daily loss of Rs. 33 million for the monopoly government utility.
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Electricity sector has few choices. Prices have to go up. The monopoly power supplier, the Ceylon Electricity Board has Rs.
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27 billion in short-term debt due to selling power below cost.
Feeble attempts to raise revenue haven't worked.
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The last proposed price hike, which is being challenged in courts, would have raised revenue by a mere 3 percent.
Far short of the 40 percent revenue increase needed to for CEB to break even.
For power consumers who are already paying very high rates, another increase will tough to bear.
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For instance a large scale commercial user of electricity here pays Rs. 12 for each