Opinion
President’s energy directives ignored by the Power Ministry: Another Point of View
Dr Tilak Siyambalapitiya
Dr Janaka Rathnasiri laments (The Island 19 Feb 2021) that the Power Ministry has ignored the President’s directive to draw 70% of energy from renewable sources by 2030. I saw the approved costs of electricity production for 2019, published by the Public Utilities Commission (PUCSL).
PUCSL has also approved the prices to sell electricity to customers. Although various customers pay at various “approved” prices, the average income from such “approved” prices in 2019 was Rs 17.02 per unit. It is not only the Ministry, according to Dr Rathnasiri, ignoring the President; PUCSL is also breaking the law, which says prices and approved costs should be equal.
So there is already an illegal gap of Rs 21.59 minus 17.02 = Rs 4.57 per unit of electricity sold. If electricity prices are not to be increased, as stated by many in the government and PUCSL, let us say the following: Distribution costs should decrease by 0.57 Rs per unit. Generation costs should decrease by Rs 4.00 per unit.
PUCSL also published the approved cost of purchasing or producing electricity from various sources for 2019. The actual energy values were different to what was approved, but let us stick to PUCSL approved figures:
I suggest Dr Rathnasiri fills-up the following table, to show how much electricity will cost in 2030 to produce and deliver, if the President’s 70% target is to be achieved and for PUCSL to abide by the law. Let us assume that electricity requirement in 2030 will be double that of 2019.
Since PUCSL has to save Rs 4 from 13.92, the average selling price for energy should be Rs 13.92 minus 4.00 = Rs 9.92. With a target network loss of 7% (in 2019 it was 8.4%), the average cost of production has to be Rs 9.27 per unit. Eight cages have to be filled-up by Dr Rathnasiri.
In 2012, PUCSL approved the energy cost of electricity produced from coal power to be 6.33 Rs per kWh. In 2019, PUCSL approved 9.89 (56% increase). For renewable energy, it was 13.69 in 2012, and 19.24 in 2019 (a 40% increase, but double the price of electricity from coal fired generation). In 2012, rooftop solar was not paid for: only give and take, but now paid Rs 22, against Rs 9.89 from coal. There seems to be something wrong. The price reductions of renewable energy being promised, being insulated from rupee depreciation, are not happening? Either Sri Lanka must be paying too little for coal, or it may be renewable energy is severely over-priced?
On coal we hear only of some corruption every now and then; so Sri Lanka cannot be paying less than it costs, for coal.
Enough money even to donate
vaccines
Another reason for the Ministry of Power to ignore the President’s directive may be the Ministry’s previous experience with similar Presidential directives. In 2015, the President at that time cancelled the Sampur coal-fired power plant, and the Ministry faithfully obliged. That President and that Prime Minister then played ball games with more power plants until they were thrown out of power, leaving a two-billion-dollar deficit (still increasing) in the power sector. Not a single power plant of any description was built.
Where is this deficit? You do not have to look far. In the second table, replace 24.43 with 9.89, to reflect what would have happened if Sampur was allowed to be built. The value 12.79 will go down to 8.55, well below the target of Rs 9.27 per unit to produce. Not only would CEB and LECO report profits, but the government too could have asked for an overdraft from CEB to tide over any cash shortfalls in the treasury. All this with no increase in customer prices. Producers of electricity from renewable energy could enjoy the price of 19.24 Rs per unit. And that blooming thing on your rooftop can continue to enjoy Rs 22 per unit. The Minister of Power, whom Dr Rathnasiri wants to replace with an army officer, would have been the happiest.
In the absence of Sampur (PUCSL’s letter signed by Chairman Saliya Mathew confirmed cancellation and asked CEB not to build it), PUCSL approved electricity to be produced at Rs 21.59 and sold at Rs 17.02 per unit. The annual loss would be Rs (21.59 – 17.02) x 15,093 = Rs 69 billion per year of approved financial loss. Sri Lanka has a Telecom regulator, an Insurance regulator, a Banking regulator, who never approve prices below costs. Sometime ago the telecom regulator asked the operators to raise the prices, when operators were proposing to reduce prices amidst a price war. But the electricity industry regulator is different: he approves costs amounting to 27% more than the price, not just once but, but continuously for ten long years !
That is 370 million dollars per year as of 2019, the economy is spending, and for years to come, to burn oil (and say we have saved the environment). Did the Minister of Health say we are short of 160 million dollars to buy 40 million doses of the vaccine? Well, being a former Minister of Power, she now knows which Presidential “order” of 2015 is bleeding the economy of 370 million dollars per year, adequate to buy all vaccines and donate an equal amount to a needy country.
Prices are the production costs approved by PUCSL for 2019. The selling price approved by the same PUCSL was Rs 9.27 per unit.
The first and only tsunami that Sri Lanka experienced was on Boxing Day(26th) of December 2004. My wife and I, as usual, went down to Modara in Moratuwa to purchase our seafood requirements of seafood from our familiar fishmonger, Siltin, from whom we had been buying fish for a long time. Sometimes we used to take a couple of friends of ours. But on this day, it was only both of us that went on this trip.
We made our purchases and were returning home and when we came up to the Dehiwala bridge, many people were looking down at the canal from both sides of the bridge. This was strange, as normally if there was something unusual, it would be on one side.
Anyway, we came home unaware of anything that had happened. A school friend of mine (sadly he is no longer with us) telephoned me and asked whether I was aware of what had happened. When I answered him in the negative, he told me to switch on the TV and watch. Then when I did so and saw what was happening, I was shocked. But still I did not know that we had just managed to escape being swept away by the tsunami.
Later, when I telephoned Siltin and asked him, he said that both of us had a narrow escape. Soon after we had left in our car, the tsunami had invaded the shore with a terrifying wave and taken away everything of the fishmongers, including their stalls, the fish, weighing scales and money. The fishmongers had managed to run to safety.
This had been about five minutes after we had left. So, it was a narrow shave to have escaped the wrath of the demining tsunami( the name many Sri Lankans came to know after it hit our island very badly}
HM NISSANKA WARAKAULLE
Sri Lanka has recorded a staggering 375 elephant deaths in the past eleven and a half months due to a multitude of causes, according to the Department of Wildlife Conservation. U. L Thaufeeq, Deputy Director – Elephant Conservation said the deaths include 74 from gunshots, 53 from electrocution, 49 from hakka patas (explosive devices hidden in food), seven from poisoning, 10 from train accidents, three from a road accident, and six by drowning. It makes such diabolical reading!
“The causes of other deaths are due to natural causes or causes that could not be identified. Most of the elephants that died were young,” the official said.
Meanwhile, the human-elephant conflict has also taken a toll on people, with 149 human deaths reported this year.
Accordingly, human-elephant conflict has resulted in 524 deaths of both elephants and humans in 2024.
In 2023, a total of 488 elephants and 184 people have died consequent to the conflict, according to Wildlife Department statistics.
The human-elephant conflict in Sri Lanka has escalated to unprecedented levels with reasons like habitat destruction, encroachment, and the lack of sustainable coexistence measures contributing to the issue.
This is an indictment of the Wildlife Department for just giving the sad yearly statistics of shocking losses of our National treasures !
Given the fact that Sri Lanka boasts of 29.9% of the country declared as protected forests, Sri Lanka is a haven for nature lovers. Boasting 26 national parks, 10 nature reserves including 3 strict nature reserves, and 61 sanctuaries, the national parks in Sri Lanka offer an incredible variety of wildlife experiences.
Taken in that context, the million dollar question is why on earth the Wildlife Department is not being proactive to capture these magnificent animals and transport them into protected sanctuaries, thus effectively minimising dangers to villagers ?
Being a Buddhist country primarily, to turn a blind eye to these avoidable tragic deaths to mankind and wild elephants, we should be ashamed !
As a practising Buddhist myself, I think our clergy could play a major part in calling upon the Wildlife Department to get their act together sooner rather than later to protect human elephant conflicts !
Sri Lanka being a favourite destination amongst foreign tourists, they are bound to take a dim view of what is happening on the ground!
If the top brass in the responsible department are not doing their job properly, may be there is a case for the new President to intervene before it gets worse!
All animal lovers hope and pray the New Year will usher in a well coordinated plan of action put in place to ensure the well being of wildlife and villagers !
Sunil Dharmabandhu
Wales, UK
This has reference to the article from the Aircraft Owners and Operators Sri Lanka, titled ‘Closer look at regulatory oversight and its impact on Tourism’, published on Tuesday, 24th December 2024.To explain further, in the beginning there was the Air Navigation Act No 15 of 1950 which was followed by the Air Navigation Regulations (ANR) of 1955. This was long before the national airline had acquired pressurised aircraft, intercontinental jets, sophisticated navigation equipment, satellite communication and automatic landing systems, and ‘glass’ flight-deck instrumentation.
Today, civil aviation in Sri Lanka is governed by Civil Aviation Act Number 14 of 2010. Yet the Air Navigation Regulations (ANR) promulgated back in 1955 remain in force.
These outdated regulations still stipulate rules forbidding the carriage of passengers on the airplane’s wings or undercarriage (landing gear). In short, they are neither practical nor user-friendly. In contrast, the Air Navigation Regulations of other countries have progressed and are easy to read, understand, and implement.
To overcome the problem of outdated regulations, as an interim measure in 1969 the then Minister of Communications and Transport, Mr E.L.B. Hurulle issued a Government Gazette notification declaring that the Standard and Recommended Procedures (SARPs) in Annexes to the ICAO Convention signed by Ceylon in 1944 shall be made law.
Even so, nothing much was done to move with the times until updating of the Civil Aviation Act 14 of 2010, while the Air Navigation Regulations remained unchanged since 1955. However, these regulations were modified from time to time by the promulgation of Implementing Standards (IS) and General Directives (GDs) which were blindly ‘cut and pasted’ by the Civil Aviation Authority of Sri Lanka (CAASL), from the ICAO (International Civil Aviation Organisation) Annexe ‘SARPS’ without much thought given. To date there are literally 99 IS’s starting from 2010.
The currently effective air navigation regulations are not in one document like the rest of the world, but all over the place and difficult for the flying public to follow as they are not regularly updated. This sad situation seems to have been noticed by the current regime.
The National Tourism Policy of the ruling NPP states, “Domestic air operations are currently limited due to high cost and regulatory restrictions. The current regulatory and operational environment will be reviewed to ensure domestic air connectivity to major tourist destinations. The potential of operating a domestic air schedule with multiple operators is proposed. Additionally, domestic airports and water aerodromes in potential key areas will be further developed, for high-end tourism growth.”
“The tourism policy recognises Sri Lanka’s potential to develop Sri Lanka’s aviation-based specialised tourism products, including fun flying, hot air ballooning, paragliding, parachuting and skydiving, and scenic seaplane operations. To facilitate the growth of these niche markets, existing regulations will be reviewed with the aim of attracting capable investors to develop and operate these offerings.”
It remains to be seen whether the NPP government lives up to those promises.
Note:
That OPA report talks of two funds: ‘Connectivity’ and ‘Viability’ for a limited period like three or five years to help jump-start the domestic aviation industry.
The ‘Connectivity Fund’ will cap the seat price for local passengers to a more affordable value to destinations while the ‘Viability Fund’ will assume that all seats are occupied and compensate the operator for any unutilised seat. The intention is to popularise domestic aviation as a safe, quick and convenient mode of transport.
Capt. Gihan A Fernando
RCyAF/ SLAF, Air Ceylon, Air Lanka, Singapore Airlines and Sri Lankan Airlines.
Now A Fun Flier
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