Gov't denies reports of planning to subsidise utilities for industries

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The Energy Ministry says government has not taken any decision to reduce the recent hikes in utility tariffs.

There have been reports that government has decided reduce tariff increases by half, specifically for industries.

The Public Utilities Regulatory Commission (PURC) last month announced a 78.9 percent upward adjustment in electricity and 52 percent increment in water tariffs effective October 1.

But this has been met with serious opposition by labour unions and industries who argue that, the increments are unbearable resulting in consultations between government and the labour unions to avoid a possible strike.

Consultant to the energy ministry, Edward Bawa told Joy News no decision has been reached with regard to reducing the tariffs adding, the recent adjustment itself makes provision for some relief for consumers.

"What we do know very clearly is that subsidy packages [for the poor] are all in place", Mr. Bawa said.

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