Street protests likely

By Ifham Nizam

All trade unions of the Ceylon Electricity Board (CEB) are to join hands this week to oppose the government move to impose fresh tariff hikes.

Unionists said the government was bent on going ahead with its plan to introduce another tariff hike of 30 percent in January, followed by a 40 percent increase in July in 2023.

CEB Joint Trade Union Alliance Convener, Ranjan Jayalal, told The Island that the Minister of Power and Energy had been expected to present a proposal, on Monday, to increase the tariff. However, he had not done so, probably because of the pressure from the unions, Jayalal said. However, the plan to increase tariffs was on track, he added.

“If the Cabinet approves the proposal, the entire CEB workforce with the backing of the masses will take to the streets opposing the government’s unjust tariff increase, at a time the people are finding it difficult to have a decent meal,” he said.

The trade unionist also mentioned that they were opposing the government decision to restructure the CEB.

The Committee appointed to look into structural reforms has recommended the division of the debt-ridden CEB into 14 companies with a 15th entity to take over any residual functions and activities.

The nine-member committee said that to attract investors into the power and energy sector, the government had to “move away from practices, such as accepting unsolicited proposals towards a procurement framework that is transparent, fair and competitive.”

According to Energy Minister Kanchana Wijesekera the proposed tariff hike aimed to reduce losses.

The approved tariff hikes were expected to raise some Rs. 500 billion in additional revenue including LECO sales, which represents only a 75-percent increase of profit, compared to the needed 82.4 percent.

A 75 percent tariff hike granted by the Public Utilities Commission, in August 2022, and implemented with effect from October 2022, was not enough to cover costs, and the CEB is still making losses, the CEB officials said.

The Island recently reported that the profit of the CEB, in October 2022, was Rs. 2.84 billion, with expenditure at Rs. 32.98 billion, and revenue at Rs. 35.82 billion.

Tariff increases are expected to cover the past losses due to years of selling power at subsidised rates, inefficient operations, corruption and economic crisis, Power and Energy Minister, Kanchana Wijesekara, said, adding that a new tariff scheme had been introduced for low income households.

Chairman of the National Council sub-committee on identifying short and medium-term programmes related to economic stabilisation, former Power and Energy Minister, Patali Champika Ranawake, who is an electrical engineer by profession, said that the CEB’s submission on reasons behind the tariff hike and costs incurred by them were not acceptable.