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This study examines three interrelated concepts related to the electricity sector. The threeconcepts examined in this study are basic need electricity, affordability to electricity andelectricity poverty. Projection of electricity demand by prospective electricity consumers isalso an objective of this study. In consultation with the client and steering committee theresearch team developed several indices to measure the three concepts. Those indices areused by other researchers in the same field.The data is collected from a country wide survey of electrified households and non-electrifiedhouseholds. This report presents methodology, results and policy and other recommendationsof the present study.
Purpose of the Study
The main purpose of this study is to examine the three interrelated issues on electricity sectorof Sri Lanka. The three issues are
Basic Need Electricity, Affordability for electricity andElectricity Poverty. Projection of the Demand for electricity by Prospective ElectricityConsumers
is also an objective of this exercise
Brief Description of the Project
This report is a supporting document for the Asia Development Bank (ADB) policydocument on the proposed electricity policy for Sri Lanka of which one of the mainobjectives is to identify minimum electricity requirement of electricity consumers and todesign a new subsidy scheme to guarantee that all the citizens of Sri Lanka will be entitledfor the minimum electricity requirement.Presently, the Government of Sri Lanka (GovSL) and Ceylon Electricity Board (CEB) usesome arbitrary measures of minimum electricity requirements for billing purposes. Accordingto the accepted norm all households using less than 90KWhs per month are subsidized. Thisminimum electricity requirement is an estimate based on the assumption that a typicalhousehold uses electricity for lighting, watching television and listening radio. Electricity forcooking purposes and other household needs such as use of electric iron etc. are not includedinto these basic needs of electricity. Series of discussions that the SPARC had with variousKIs in this regard revealed that the basic needs of electricity in the above formulae is notbased on any empirical study of the electricity consumption by the poor. It is merely anarbitrary formulae decided by policy makers and the CEB. The present study will address this