{"id":3882,"date":"2017-11-14T18:16:59","date_gmt":"2017-11-14T12:46:59","guid":{"rendered":"http:\/\/www.cebeu.lk\/cebeuw\/?p=3882"},"modified":"2017-11-14T18:18:43","modified_gmt":"2017-11-14T12:48:43","slug":"pricing-formula-for-fuel-by-march-next-year-electricity-by-september","status":"publish","type":"post","link":"https:\/\/www.cebeu.lk\/?p=3882","title":{"rendered":"Pricing formula for fuel by March next year; electricity by September"},"content":{"rendered":"

The government is now committed under the structural benchmarks of the IMF to introduce a pricing formula for fuel in March and a pricing formula for energy probably by September, next year,\u201d Coomaraswamy told a forum in Colombo, this week.<\/p><\/blockquote>\n

State-run Ceylon Electricity Board (CEB) has a near total monopoly in electricity generation and a total monopoly in transmission and distribution in Sri Lanka, while Ceylon Petroleum Corporation (CPC) has only one private sector competitor\u2014Lanka Indian Oil Company PLC.<\/p>\n

Both the CEB and CPC have been selling their products and services at subsidized prices and as a result, have accumulated losses running into billions of rupees, becoming two of the largest loss-making state-owned enterprises (SOEs).<\/p>\n\n\n\n
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  • \u00a0Govt. committed to introduce price formula under IMF structural benchmarks<\/strong><\/li>\n
  • This will allow CEB and CPC to price products and services in a cost-reflective manner<\/strong><\/li>\n
  • Successive governments have used electricity tariffs and fuel prices to sway voters<\/strong><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Although the government directs these two state-owned utilities to sell their products and services at subsidized prices, no budgetary transfers are done to support these subsidies, leaving them with a precarious financial predicament, which becomes toxic with their inherent inefficiencies.<\/p>\n

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    A pricing formula will allow these utilities to price their products and services in a cost-reflective manner and keep the political interferences at bay. Successive governments have used electricity tariffs and fuel prices to sway<\/p>\n

    http:\/\/www.dailymirror.lk\/article\/Pricing-formula-for-fuel-by-March-next-year-electricity-by-September-139224.html
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