Govt. to review PUCSL regulatory framework and appoint new commissioners soon

• Finance Ministry to decide on PUCSL’s new regulatory framework in consultation with Presidential Secretariat
• Cabinet Spokesman says Govt. understands need for regulator but current PUCSL set-up may change
• Charges delays of power projects prompted Govt. to suspect deliberate meddling

By Asiri Fernando

The Government yesterday ruled out immediate scrapping of the Public Utilities Commission of Sri Lanka (PUCSL) and said it would appoint new commissioners while it revamped the regulatory framework of the regulator. 

Cabinet Spokesman and Media Minister Keheliya Rambukwella yesterday said that the Government would reconstitute the PUCSL in a different format by introducing new legislation.

During the Cabinet meeting on Monday approval was given to revamp the Commission and remove its powers to approve power projects despite concerns by opponents that it will open the door to corruption. 

The Cabinet paper gave the nod for the Attorney General to commence drafting the necessary legal changes. 

Rambukwella acknowledged the Government was concerned about losing multilateral funding from agencies such as the Asian Development Bank (ADB) if the regulator was scrapped. “The system that is in place will be replaced with a new one,” Rambukwella said responding to a question by the Daily FT. 

Commenting on the proposed changes to the PUCSL, the Cabinet Spokesman confirmed that the Government planned to make new appointments to the PUCSL. Earlier this month all five commissioners of the PUCSL resigned following a request by the Treasury.   

“The specific changes to the legislation are yet to be considered. It will be handled by the Ministry of Finance in consultation with the President’s office. But whatever decision we take regarding vesting of powers in the organisation depends on fast-tracking of activities we (Government) have embarked on.”

He also said the Government would be appointing new commissioners to fill the existing vacancies over the next few weeks. 

“We’ll be making [appointments], already a few names have come up. We will have an alternative organisation similar to the PUCSL,” the Minister said. 

Rambuwella alleged that the Government suspected some decisions taken by the regulator were targeted at intentionally undermining the Government’s policy decisions, which include a selection of power projects.  

However, PUCSL unions have denied this charge and recently emphasised that the bulk of projects were speedily approved. They contend that some projects were only delayed because they were formulated in contravention of the Sri Lanka Electricity Act, which prohibits avoiding tender procedures or because of other technical irregularities by the Ceylon Electricity Board (CEB).

Union members have also said billions in public funds were saved due to PUCSL opposing multiple emergency power purchases over the past four years, some of which had Cabinet approval. 

Rambukwella also claimed that the political culture of the country dictated that heads of public institutions normally resign when a new government comes into power but this had not happened at the PUCSL. However, the PUCSL is established by an Act of Parliament and commissioners are appointed for a five-year term. 

“We have a political culture where heads of public institutions resign and are reappointed after a new government comes into office, especially one with a two-thirds majority. We waited for a year. During this time suspicions arose about the progress of the Ceylon Electricity Board (CEB) projects. We felt that, on certain occasions, some groups acted deliberately to derail policies of the President. Therefore, we had to act,” Rambukwella argued.