By Charumini de Silva

A range of stakeholders yesterday called on the Government to reconsider the decision to hike electricity tariff amidst multiple challenges emanating from the ongoing economic crisis, though implying a preference to shift toward cost-effective renewable energy sources. 

These recommendations were echoed at a seven-hour stakeholder consultation on the proposed tariff revision, convened by the electricity regulator – Public Utilities Commission of Sri Lanka yesterday at the BMICH.

Over 60 participants took part in the session, where a total of 46 individuals joined physically, while 17 others attended via video technology to share their views and proposals.

The majority of the stakeholders pointed out that a tariff hike cannot be justified at this moment, though the cost-reflecting utility structure is critical. They asserted that people across the board are struggling to make ends meet given the multiple challenges and skyrocketing cost of living. 

“This is not the right time to go for an upward tariff revision, even though we all agree it is inevitable. But, people are already dealing with many difficulties on so many fronts. Families are barely living and businesses are near bankruptcy. Thus, authorities must think strongly before imposing such measures to further burden the people,” they explained.

They also claimed that the proposed electricity tariff hike was an unfair request by the Ceylon Electricity Board (CEB) to cover up their flaws.

“Sri Lanka has 35 power stations, and in my opinion, it would only need around 200 employees to run the operations. However, since 1994, we have seen that there are 10 times more employees at CEB than required. This has resulted in an enormous cost in terms of salaries along with many benefits, which no other public servants enjoy,” they added. 

Noting that the CEB staff had not worked on new ways to enhance the productivity of the organisation or to introduce cost-effective and environmentally friendly energy sources to reduce the burden on the national economy, rather ganged up in unions to threaten every administration to get their benefits sorted at the cost of the general public.

“Even if the Government calls for bids to set up, there are many local private firms that are willing to build solar parks in areas like Mannar and Vavuniya, but the CEB does not like it as it will crush their monopoly or mafia,” they charged. 

The stakeholders suggested to the PUCSL to introduce a mechanism to the State sector agencies, where the majority of the energy waste is taking place. 

“At households, we save electricity as much as possible – but we do not see that happening in Government offices. The common sight in public offices is that the air conditioning, the fans, and the light bulbs are switched on, yet there is not a single person on the premises. First, do your part and be an example, by cutting down on State sector unnecessary expenditure because the majority of the people pay their dues, it is often the big electricity users who do not pay their bills,” they stressed.

Some also argued it was unreasonable to introduce tariffs when the authorities cannot even supply uninterrupted power supply.

Industrial stakeholders called on to extend a more relaxed tax regime to purchase renewable energy gear, thus encouraging people and businesses toward environmentally friendly energy solutions.

They also highlighted the importance of maintaining the CEB financially viable, insisting that a bankrupt utility cannot ensure a continuous power supply. 

“If the existing energy products are not paid, they will stop operating. At present, the CEB payments are due over nine months and stakeholders have already begun to shift their investments into other sectors. This will mean no new investments will come into the renewable energy sector, thus driving away the cheapest source of power and the country's goal to achieve energy security,” they explained.

The renewable energy sector representatives pointed out that extending subsidies further will neither give a return to the economy nor the electricity users, whilst suggesting diverting funds to develop renewable energy sources insisting it will provide a much higher return. 

PUCSL Chairman Janaka Ratnayake stated that the Commission has the final authority on the electricity tariff increase, but will arrive at its decision only after a thorough evaluation of all parties concerned and seeking the policy of the Government.

Thereafter, the PUCSL will also obtain the Cabinet of Ministers' approval and will revise the tariff as per the sectors and consumption of electricity. 

CEB affirms full cost  recovery tariff inevitable