Jan 28, Colombo: Sri Lanka's state owned power authority, Ceylon Electricity Board (CEB), plans to make a proposal to the Public Utilities Commission (PUC) requesting a revision of electricity tariffs.

CEB Chairman Dr. Wimaladharma Abeywickrema has said the proposal would be given to the PUC shortly.

The CEB is expected to seek the tariff revision following the decision by the Ceylon Petroleum Corporation (CPC) to increase the price of furnace oil used for thermal power generation by Rs. 25 a liter.

Abeywickrema has said the CEB is unable to pay the increased amount for the furnace oil.

He has explained that paying the increased amount would result in the CEB incurring an additional loss of Rs. 24 billion this year.

According to Abeywickrema, the only option was to increase tariffs. The CEB currently sells a unit of electricity to consumers for Rs. 17.50 when the cost of generating a unit is Rs. 21.

According to the Central Bank the CEB sustained a loss of 25.5 billion rupees in 2011 and loss of Rs. 45-50 billion is estimated for 2012 due to the increase in thermal power generation when the prolonged drought reduced hydropower generation.