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Never grant subsidies to one and all

All over the world there are people supported with various subsidies. But, in Sri Lanka, subsidies are given to one and all. This practice must stop forthwith.

It is surprising that electricity is sold at about Rs. 5 a unit up to 90 units a month, when the actual average cost is as high as Rs. 15 a unit! This may be an incentive for the people to keep consumption within 90 units per month so as to save electricity.

Unfortunately, this concession costs the country immensely as the CEB has to meet its cost when generation plants are operated below capacity. To obtain highest efficiency, the plants have to be operated at near full load level. If not, we waste energy instead of saving it!

Electricity is generally sold at a fixed rate proportionate to the consumption and only those who are in low income groups should be given concessions of varying degrees according to their income. Normally, this work is handled by the Department of Social Security, which decides whether someone deserves a subsidy or not.

Here in Sri Lanka, I think there are three income groups which deserve concessions amounting to 75%, 50% and 25% on their electricity bills and others must be made to pay the full amount so that the number of people getting the subsidy could be reduced by one half.

What the CEB has to do is to issue forms to consumers to be submitted through the Department of Social Services, indicating the income category they belong to. There is no way that the rich will waste electricity as it is a commodity which cannot be used more than needed.

According to what I have seen in the newspapers, the CEB is supplying about 28 million units of electricity a day and I think it is too low to maintain and upgrade this massive organisation. Although engineers provide technical input, there is no proper commercial input to make this very valuable organisation economically viable.

The CEB has not only to supply electricity but also to increase the demand for it to sell more of it by operating the plants at maximum efficiency. This can be easily achieved by encouraging consumers to invest in small appliances such as electric jugs, rice cookers, microwave ovens etc.

The CEB can provide such equipment to consumers through private companies and recover the cost by adding it to monthly electricity bills in installments.

In Australia, even air conditioners are supplied thus. Since these appliances are worked invariably during daytime, the daytime load which appears to be rather low, can be increased to the advantage of the supplier.

Consumer, too, will benefit as these appliances work very efficiently, saving gas or kerosene oil used for cooking etc.

M. Bertie Perera

Colombo 5.


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