Even if the Ceylon Electricity Board (CEB) had not increased the tariff in October 2023, it would have made a profit of 40 billion rupees, Education Secretary of the Frontline Socialist Party (FSP), Pubudu Jayagoda said.

He added that the CEB can give a tariff reduction of 33 percent this year, given that it made a profit of 50 billion rupees in 2023 and because the estimates it has come up for 2024 are faulty.

“In response, the Minister of Power and Energy said that the CEB is making a profit and that he plans to distribute a part of the profit to the people. However, according to the laws that govern the CEB, this is an institution that should not determine prices in order to make a profit. The laws say that tariffs should be determined to cover costs in a just manner.”

Jayagoda said the CEB has determined that energy cost of generating electricity will be 351 billion rupees in 2024. This number was significantly lower in 2023, i.e., by 85 billion rupees. In 2023, the maintenance costs of power plants was 19.9 billion rupees. This has increased to 81 billion rupees for 2024. If we look at the distribution cost, it was 62 billion in 2023. In 2024, it will be 133 billion rupees.

“In 2023, the CEB had spent 21 billion rupees on salaries. This year, the salary bill is 43 billion rupees. All the data I have quoted is from a report the CEB sent to the Public Utilities Commission of Sri Lanka (PUCSL). How can the salaries double? There is no decision on a salary hike or bonuses by the government,” he said.

Jayagoda said that these numbers are used by the CEB to calculate the cost of production. Even if the salaries of all CEB workers are doubled, the estimated cost of salaries would be 42 billion rupees.

“Obviously, this kind of mammoth pay hike doesn’t take place anywhere. Why have they exaggerated numbers like this? It is obvious that the government wants to exaggerate the cost of production, increase tariffs and make a huge profit.”

Jayagoda said that last year, close to a million households have had their electricity disconnected. He said that there is a long-standing debate on whether electricity should be made a profit-making business or whether it is for public good.

“We can’t think of electricity supply from a business perspective alone. Now, electricity is a mainstay of daily life, and states provide electricity at a concessionary rate because it boosts productivity and quality of life. Imagine what a devastating impact the disconnection of electricity must have had on families,” the FSP Education Secretary asked.

In the last two years, 19,000 SMEs, too, have seen the power supply discontinued. The Minister of Power and Energy states that he has made the CEB profitable, but when one looks at the economy as a whole, the overall economy has suffered.

“The high electricity costs make our products less competitive, both domestically and internationally. I think we all agree that we need to boost our exports. How can we do that when electricity tariffs are this high?”

Jayagoda said that in the report to PUCSL, the CEB calculated finance cost for 2024 has gone up by 18 percent compared to 2023. This is not possible because the interest rates have gone down consistently in 2023 and 2024. RK