Power politics to electrocute people
PUCSL Chairman Janaka Ratnayake yesterday called on electricity users to brace themselves for an overall tariff hike of 66% to earn Rs. 288 billion for the Ceylon Electricity Board to cover its retrospective losses.
“The proposal put out for approval by CEB was 66% to earn Rs. 288 billion for the year. However, the PUCSL only raised the tariff by 36% and reduced the CEB’s additional revenue to a manageable Rs. 142 billion per year. But with PUCSL members approving the CEB’s tariff structure will put tremendous pressure on the general public and have an adverse impact on the overall economy,” Ratnayake told the Daily FT.
According to the proposal submitted by the CEB, he said electricity groups using below 90 units in the domestic sector will see a 250% tariff increase.
“The bizarre fact of this proposal is that the CEB is trying to increase the tariff of the low-user category, which accounts for about five million electricity users who take up below 90 units per month. The tariff hike will also increase the industrial category including tourist hotels by 150%. All of this will deteriorate the crisis-hit economic activities further,” Ratnayake said.
The Daily FT learns that President Ranil Wickremesinghe summoned the PUCSL Secretary to endorse the split-Commission’s decision to effect the CEB proposal effective from yesterday.
The PUCSL Chief also said industry, hotels, general purposes, hotels, State agencies and religious places will also face an electricity tariff and fixed rate hike.
PUCSL Chairman also informed the CEB General Manager that the majority of its members have rejected the proposal of the Commission and therefore the proposed plan cannot be implemented.
He claimed that the tariff proposal, which was authorised by the PUCSL members, is unlawful, as the Commission stands to protect the rights of the public as an independent organisation and not to be henchmen of any political authority or State agency.
Three members of the commission Attorney-at-Law Chathurika Wijesinghe, Douglas Nanayakkara and S.G. Senaratne has opposed PUCSL Chief’s proposal and rejected it.
“Approving the proposal to increase the electricity tariff proposed by the CEB, in the same way, is against Section 30 of the Electricity Act and it must be said that such an illegal decision was taken by the three PUCSL members under the influence of the political authority, the officials of the CEB and the Power and Energy Ministry,” he alleged.
On 30 January, the same members of the PUCSL at their meeting infamously decided to reject President Ranil Wickremesinghe-led Cabinet decision on interim electricity hike with retrospective effect from 1 January. PUCSL Commissioners decided that as per its Act, the increase was not valid as there was no provision for an interim hike or with retrospective effect.
The Cabinet, strengthened by a proposal of the Ceylon Electricity Board earlier this year agreed to implement a 75% increase in electricity tariff hike on top of a similar increase in August 2022.
Last year PUCSL approved the CEB request to increase electricity tariffs by 75% on average for all categories from 10 August 2022, after nine years.
Ratnayake claimed that the PUCSL members had rejected all other stakeholder comments and ideas in favour of an exorbitant electricity tariff revision. Important factors in an electricity tariff revision — fairness of the costs, the actual demand for electricity, and the interests of electricity users were disregarded in approving the CEB’s proposal.
He also said that before the tariff revision last year, the CEB had a cash flow of Rs. 19 billion and post-tariff hike it has increased to Rs. 35 billion per month. Against this backdrop, he suggested the Government look into better financial management practices at CEB before going into restructuring it.
“At least then the Rs. 35 billion earned monthly from electricity users by the CEB is managed properly,” Ratnayake pointed out.