News Alert, The Ceylon Chamber of Commerce
January 2011
NEWS ALERT
ECONOMIC INTELLIGENCE UNIT
THE CEYLON CHAMBER OF COMMERCE
REVISED ELECTRICITY TARIFFS & POSSIBLE NEXT STEPS TO REDUCE THE
ELECTRICITY BILL
We forward herewith the Electricity tariffs that became effective from 1st January 2011,
published by the Public Utilities Commission of Sri Lanka (Please see Attachment 1).
We are pleased to inform you that the current tariff increase is closer to the 8% level
announced in the Budget, much lower than the proposed tariffs that were announced by
the Public Utilities Commission for public consultation on 24 November 2010.
Kindly note that except for industries where contract demand is less than 42kVA (I‐1
category) all industries (I‐2 and I‐3) will be billed on Time of Use tariff scheme with lower
tariff during off peak time from 10.30pm to 5.30am. and high tariff during peak time from
6.30pm to 10.30pm. Hotels will be charged a separate rate, somewhat higher than the
industry rate. Here again all hotels with contract demand exceeding 42kVA (H‐2 & H‐3) will
be billed on time of use basis.
The off peak tariffs are much lower than the peak tariffs (please see attachment) and the
Electricity Bill can be reduced by shifting some of the electricity consuming operations from
peak to off peak time or day time, where it is possible. We share with you some points that
were expressed by an eminent Energy Expert at a seminar organized by the Ceylon Chamber
on Time of Use tariffs in October 2010, which might be useful for those enterprises that are
yet to take measures to shift their electricity use patterns.
What can bulk customers do to be ready for Mandatory TOU pricing from January 2011 ?
• Step 1: Have a load profile done for your electricity requirements
– Select a few typical working days, profile at least 48 hours
– Use recording equipment (can be done even manually, by reading meters at 0530,
1830 and 2230)
– May even be available in previous energy audit reports
• Step 2: Examine the peak‐time use, day‐time use
– Is peak‐time use more than 17% ? Then examine what causes it and examine how
to minimise such loads. Ex.
• reschedule water pumping, optimise chiller operations in the hotel (different
rates for day time and night‐time functions ???)
• reschedule ball mill operations in the cement factory,
• stop the washing plant at 1830 in the garment factory
• run the bambury mixer only in the night shift, in the rubber factory
– Examine how to further reduce demand both in peak and day period.
• Step 3: Implement load management and monitor
– Continue to monitor the energy use in the three intervals (before and after the TOU
is introduced)
– Can be automated, as well
Source: Status of Electricity Sector & Proposed TOU Tariffs, Dr T Siyambalapitiya, CCC Seminar on TOU Tariffs, 1st Oct 2010
News Alert, The Ceylon Chamber of Commerce
January 2011
Attachment 1
Customer Electricity Tariffs for the period
1st January 2011 to 30th June 2011
approved by the Public Utilities Commission of Sri Lanka
Customer
Category
and
consumption per
month
Energy
Charge
(Rs/kWh)
Fixed
Charge
(Rs/
month)
Maximum
Demand
Charge
per month
(Rs/kVA)
Customer
Category
and the time
interval, if
applicable
Energy
Charge
(Rs/kWh)
Fixed
Charge
(Rs/
month)
Maximum
Demand
Charge
per month
(Rs/kVA)
Domestic (D) Industry (I)
0-30 3.00 30.00 - I-1 10.50 240.00 -
31-60 4.70 60.00 - I-2
61-90 7.50 90.00 - Day 10.45
91-120 21.00 315.00 - Peak 13.60 3,000.00 850.00
121-180 24.00 315.00 - Off-peak 7.35
>180 36.00 315.00 - I-3
Day 10.25
Religious (R) Peak 13.40 3,000.00 750.00
0-30 1.90 30.00 - Off-peak 7.15
31-90 2.80 60.00 - Hotel (H)
91-120 6.75 180.00 - H-1 19.50 240.00 -
121-180 7.50 180.00 - H-2
>180 9.40 240.00 - Day 13.00
Peak 16.90 3,000.00 850.00
Off-peak 9.10
H-3
Day 12.60
Peak 16.40 3,000.00 750.00
Off-peak 8.85
General Purpose (GP)
GP -1 19.50 240.00 -
GP -2 19.40 3,000.00 850.00
GP -3 19.10 3,000.00 750.00
Notes on tariffs:
1. Eligible Government institutions shall be entitled to a 25% discount on energy charges stated above.
2. Energy charges to Religious premises have been reduced by 25% compared with the present tariffs.
3. The above tariffs do not cause any increase to Domestic customers using up to 120 kWh per month
and to Small and Medium Enterprises (SMEs) classified under I-1, H-1 and GP-1.
4. Fuel Adjustment Charge will no longer be applicable to any customer category.
5. "month" means a 30-day billing period.
Notes on Customer Categories and time intervals
6. Codes refer to the tariff codes presently used for billing by the Distribution Licensees.
7. Hotels which presently pay either the Industrial rates or General Purpose rates are unified into a single
customer category identified as Hotels.
8. Customers in I-2, I-3, H-2 and H-3 would pay on the basis of mandatory Time of Use (TOU) tariffs.
Time intervals applicable shall be as follows.
Interval Description Interval (hours)
Day 05.30 to 18.30
Peak 18.30 to 22.30
Off-peak 22.30 to 05.30
The Commission will shortly issue the Tariff Order which would further describe the allowed
revenues for the licensees, the road map for tariff reforms and rebalancing, and the customer tariffs.
Source: Public Notice issued by the Public Utilities Commission of Sri Lanka on 30 Dec 2010.
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