Sri Lanka’s cross-subsidising power tariff revision questioned

 Sri Lanka’s recent electricity tariff revision was focused mostly on revenue sufficiency through a discriminatory cross-subsidisation practice that discourages the overcharged and promotes overconsumption by the subsidised, Advocata said.

The Colombo-based free market think tank said in a statement on Tuesday October 31 that the controversial tariff revision approved by the regulator, the Public Utilities Commission of Sri Lanka (PUCSL), seemed focused mainly on revenue sufficiency, ignoring non-discrimination, economic efficiency, transparency and other aspects.

According to the organisation, the “differential” tariffs are inequitable and make little economic sense.

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