Will consumers get a bonus from CEB?

With the enhanced profitability of the Ceylon Electricity Board (CEB), partly helped by increased generation of electricity from low-cost hydro power, consumers as well as industrialists would be eagerly hoping for a reduction in their electricity bills. Unfortunately, the CEB has requested a two-week extension from the Public Utilities Commission of Sri Lanka to submit its proposed electricity tariff revisions, causing delays to the anticipated benefit. Due to the latest development, the earliest possible date for the implementation of the revised tariffs is 17 January 2025.

As per the conditions of the IMF bailout package, the pricing of key utilities like fuel and electricity need to be cost-reflective. The stipulated condition by the global lender enabled key SOEs like the CEB and CPC to attain financial viability. 

In the meantime, the Ceylon Electricity Workers’ Union – a prominent trade union attached to the Government-owned utility – has requested its Chairman Dr. Tilak Siyambalapitiya to pay employee bonuses before 10 December. The union is led by none other than the militant trade unionist – Ranjan Jayalal – a leading NPP/JVP activist who is notorious for being a frequent trouble maker. The suspicion arises whether the CEB would demonstrate reluctance to reduce electricity charges in light of the vociferous demand of the NPP-backed trade union.

When the CEB increased electricity charges by a substantial percentage under the Wickremesinghe Presidency, the then Power and Energy Minister Kanchana Wijesekera and former President Wickremesinghe earned the wrath of the general public. In particular, the considerable surge in electricity prices made the then Government extremely unpopular among the income earners of the few metropolitan households in the country that have air conditioners as their bills for electricity usage almost trebled. Observing this frustration among the public, President Anura Kumara Dissanayake, being a shrewd political tactician, vowed to bring down the power tariffs by one-third in the run up to the Presidential election. The populist pledge appealed to the voters who had been battered from high electricity bills. Therefore, the Government would be compelled to deliver on their promise and the inability to do so would significantly dent their public approval.

Nevertheless, the demand for a bonus by the NPP-affiliated trade union with a rather threatening tone could place the Government in a quandary with regard to lowering the electricity tariff. In the event the bonus is granted, the State-owned firm would be forced to reduce the charges by a negligible amount which would make the consumers annoyed. On the other hand, if the bonus is not granted, the Government would become unpopular among the unionised employees of the State-owned enterprise. In fact, the employees of organisations like the CEB and CPC were furious with former Minister Kanchana for not giving in to their demands during his ministerial stint, and most of the employees of the two controversial State entities associated with the energy sector overwhelmingly voted for the NPP during the recently concluded national-level elections.

Jayalal has been a prominent political mainstay of the JVP for a long period of time and he was also an NPP National List candidate at the last Parliamentary election though he did not find himself among the nominated MPs by his party. Probably, the trade union leader could be fuming with anger over his exclusion by the party despite his active contribution towards the Marxist political party for decades. Even an individual like Sugath Thilakaratne, a newcomer to both the NPP and politics, was nominated by the ruling party ahead of a committed JVP/NPP activist like Jayalal.

Corruption is rampant among all layers of the CEB employees. It is well known that the State-owned utility operator is associated with widespread fraud and financial leakage. The Government must prioritise the interest of electricity consumers without giving in to the selfish demands of opportunistic trade unions and lethargic as well as corrupt workers of the electricity monopoly.