New pricing formula to be announced today

By Shamindra Ferdinando

Samagi United Trade Union Force (SUTUF) convener Ananda Palitha yesterday (19) said that the Public Utilities Commission (PUC) and the CEB would announce an increase in power tariffs shortly regardless of a previous decision to restrict the number of electricity revisions to two a year. The CEB implemented revisions in Feb. (61.65% increase) and June (14% decrease) this year.

The trade union is affiliated to the main Opposition Samagi Jana Balawegaya. Palitha said power tariffs would be increased in line with the Wickremesinghe-Rajapaksa government’s response to the IMF conditions.

The trade union activist said that the CEB, which first asked for 22% increase in power tariffs on the basis of revenue losses, on Sept. 26, had brought it down to Rs 17 bn when the PUC sought clarification regarding the data submitted by the CEB. “Now, the CEB is asking for a 10 percent increase,” Palitha said, adding that the increase would cause severe pressure on the already struggling economy.

A PUC spokesperson told The Island that the increase would be announced today.

Responding to The Island query, Palitha said that the assurance on two power tariff revisions annually had been given by President Ranil Wickremesinghe and Power and Energy Minister Kanchana Wijesekera in January.

Claiming that he had obtained the latest official data, Palitha questioned the failure on the part of the CEB to recover unpaid bills amounting to Rs 65 bn. The former UNP trade union leader challenged the CEB to release the names of those who hadn’t paid massive bills but continued to receive uninterrupted services. “Among the culprits are politicians, politically influential persons and major companies,” Palitha said, adding that those who settled their bills religiously with difficulty were being further burdened.

However, PUC Chairman Prof. Manjula Fernando recently declared that the CEB had made two proposals regarding third price revision this year in line with a cabinet decision. Fernando said that though tariff proposals could be submitted in January and July and the next revision scheduled for January next year, the Cabinet advanced the tariff revision to Oct., this year.

Commenting on the submissions received by the PUC on Oct 18, Palitha said that the people had lost faith in the public sector due to the deterioration of state finance as repeatedly underscored by statements issued on the proceedings of parliamentary watchdog committees.

Palitha said that regardless of assurances given since the change of government in July last year absolutely nothing has been done to discipline the CEB which remained one of the most corrupt state institutions. There couldn’t be a better example than the recent Supreme Court directive to CEB to identify and take appropriate action in respect of officials responsible for blocking a solar power project proposed by a private company that had fulfilled all the required conditions.

The three judge bench comprising Justices Yasantha Kodagoda, Gamini Amarasekera and Dileep Nawaz found fault with the first respondent CEB and the second respondent Sri Lanka Sustainable Energy Authority (SLSEA) responsible for their failure to mobilise new generation projects for the production of electricity using the abundant renewable energy resources in the country.

Pointing out that Vavuniya Solar Power (Private) Limited had informed the Supreme Court that it had applied to the SLSEA in 2012 for approval to commission and operate a solar-powered electricity generation plant in Vavuniya, Palitha said that the country paid a very heavy price for the failure on the part of successive governments to reign in the CEB.