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Talks on annual electricity tariff formula: PUCSL sidelined? | The Morning
Utility regulator insists only it can draft and approve tariff methodologyWarns Energy Ministry ‘cannot act as both owner and regulator’Says existing tariff system already based on PUCSL formulaGovt. mulls annual revisions to replace current quarterly systemIn the wake of reports that the Energy Ministry and the Finance Ministry are in the process of introducing a new electricity tariff formula, the Public Utilities Commission of Sri Lanka (PUCSL) stated that any tariff methodology has to be prepared and approved by the PUCSL to ensure reasonable costs and fair profits within the electricity sector.When contacted by The Daily Morning, PUCSL Director - Communication, Jayanat Herat said that electricity tariffs are determined based on the principle of reasonable cost and fair profit, and that this responsibility has been entrusted to the PUCSL under both the previous and current legal framework.He stressed that fulfilling this responsibility requires an approved tariff formula prepared by the regulator itself. “We cannot ensure reasonable cost and profit without a tariff formula. We also cannot do that using a formula that is prepared by another party. So, our stance is that the methodology should be prepared and approved by the PUCSL.”Herat also pointed out that the Energy Ministry functions as the owner of the utility, and therefore should not be involved in drafting the tariff methodology. “The Ministry is the utility’s owner, so the owner cannot do it.”He further explained that the tariff methodology currently in use was developed by the PUCSL and has been the basis for all previous tariff revisions. “The previous tariff methodology is what is being used now. It was prepared by the PUCSL. It is based on the fact that all previous tariff revisions were done,” it said.However, he acknowledged that related policy decisions — such as determining how frequently tariffs should be revised a year — fall within the purview of the Government. “The Energy Ministry can decide on policies such as how many times they are going to revise tariffs in a year. That is done by the Cabinet of Ministers. However, the tariff formula is prepared and approved by the PUCSL.”Recent reports stated that the Energy Ministry and the Finance Ministry are currently engaged in discussions to introduce a new electricity tariff formula under which revisions would take place only once a year, instead of the present system where tariffs are reviewed four times within the year. According to t...
PUCSL seeks fuel pricing powers - lankatalks.com
The Public Utilities Commission of Sri Lanka (PUCSL) is of the view that bringing fuel pricing under its regulatory authority, as originally envisaged at the time of its establishment, would strengthen public trust by ensuring that related decisions are made through a clear, transparent and consistently applied framework grounded in actual costs and reasonable margins, it is learnt.Speaking to The Daily Morning yesterday (24), well-placed sources within the PUCSL stated that although the regulation of the petroleum and drinking water sectors had been included in the PUCSL’s mandate in the Second Schedule as far back as 2004, the legal provisions required to activate that role have yet to be enacted. “When the PUCSL Act was introduced in 2002, it was intended to establish a multi-sector regulatory framework covering electricity, petroleum and drinking water. However, due to the absence of enabling legislation for the latter sectors, our authority has remained limited to electricity regulation,” the sources said.They further noted the Government had pledged in its policy manifesto, presented ahead of the Presidential and Parliamentary Elections, to grant the PUCSL the authority to determine fuel prices. “At present, we have no role in the fuel pricing formula. Decisions are taken by the Energy Ministry. The NPP has pledged to entrust the PUCSL with the necessary powers to regulate the fuel and drinking water sectors as originally intended. However, it is yet to be done,” they said.Responding to queries on the likely impact of such a move, PUCSL sources pointed to the Commission’s experience in the electricity sector. They noted that electricity tariffs are now determined through a transparent formula that accounts for all the relevant costs and allows reasonable returns for service providers without placing an undue burden on consumers. “People are aware of how electricity tariffs are set today. When adjustments are made for justifiable reasons, there is public acceptance because the process is clear and credible. We know everything including the cost of generating a unit of electricity, the impact on consumers, and the extent of any relief provided,” they explained. Speaking further, they said that applying a similar methodology to fuel pricing with the involvement of the PUCSL would ensure fairness for both suppliers and consumers and help address persistent public scepticism. “If a transparent pricing formula is introduced for fuel as well, people will ha...
Proposal submitted to PUCSL to increase electricity tariffs
A proposal has been submitted to the Public Utilities Commission of Sri Lanka (PUCSL) to increase electricity tariffs. Accordingly, the National System Operator (Pvt) Ltd. has submitted its revised electricity cost estimate to the PUCSL to increase electricity tariffs for the second quarter of this year.
Sri Lanka hikes electricity tariffs from April 1 amid energy crunch - MSN
The tariff revision proposal submitted by CEB was analysed by the PUCSL and after public consultations, the commission decided to increase the tariffs, he said.
