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Windfall profits for a few: Electricity costs to increase further

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by Dr Tilak Siyambalapitiya

The ink on the latest electricity tariff hike announcement is still not dry. Customers are severely stressed, with Sri Lanka’s electricity prices now reaching the highest in the region. A grocery shop in Sri Lanka pays the same price for electricity as his or her counterpart in Singapore, the highest in south and southeast Asia. A factory in Bangladesh, South Korea, Malaysia or Vietnam pays 40% less for electricity than in Sri Lanka. A medium household in Sri Lanka pays twice more for electricity than its counterparts in India, Hong Kong, Vietnam, Thailand and three times more than its Malaysian counterpart.

Eng. Parakrama Jayasinghe (The Island 30 Oct., 2023) has explained, among other things, why Sri Lanka’s electricity costs are on the rise. The present average cost of production is Rs 32. Older renewable energy agreements (mini-hydro, wind, solar parks, solar rooftops) are the only producers that sell electricity below Rs. 32. New renewable energy contracts are signed at Rs. 37 a unit or more. Electricity from diesel and fuel oil come at Rs. 80 a unit or more. So, electricity costs will rise further, because each additional unit of electricity, renewable or otherwise, is produced at Rs 37 a unit or more.

So, the price increase two weeks ago, which you will see in your bills soon, is certainly not the last. Costs in Sri Lanka will rise further, even if the rupee remains stable.

The Public Utilities Commission (PUC) approved the CEB’s request for the latest tariff hike subject to some recommendations. For example, it said, ‘Reduce the energy losses in the grid further … “send us your plan to do that.” One would have expected the PUC to take punitive action against the CEB for producing electricity from diesel at Rs 80, pushing the prices further up.

Hidden inside PUC’s list of recommendations is an innocent-looking clause, which says “Allow rooftop solar units to move between optional contracts”, which CEB never publicly asked for. Not even a suggestion to that effect was published in PUC’s brief put out for public consultation.

According to Mr. Jayasinghe’s reasoning in The Island, 30 October, new coal power costs Rs 20 a unit, new gas generation costs Rs 32 a unit, diesel or fuel oil is above Rs 80 a unit, new renewable energy agreements are at Rs 37 each a unit. Therefore, to a student of mathematics, in a country where electricity prices are the highest, the answer is simple. Replace diesel (80) with coal (20) and gas (32). Do the best to buy more renewable energy, too, at Rs 32 or less (not Rs. 37).

With PUC’s requests, the government immediately sprang into action. You may think that action was to implement cost reductions. You would have thought the government established a special task force to build cheaper power plants, both renewable and others, to reduce costs.

No! While PUC’s directives contained nothing substantial to REDUCE costs, the government swung into action to implement the only clause that would INCREASE the costs for CEB and LECO.This is how it will happen. I will explain it with an example.

Your company, say company X, has a factory, with a large roof. Responding to the government’s call to build solar roofs, you invested on a two-megawatt solar roof in 2016. You found an opportunity here by opting to sell all your electricity produced, at Rs 22 a unit. Electricity you buy for your factory was only Rs 11 a unit during 2014-2022 period, because PUC did not increase customer prices for eight years. So, you made a business decision, and signed a 20-year agreement. I will sell my solar electricity at Rs 22 a unit. Separately, remain as a customer buying electricity at Rs 11 a unit. Electricity for your night shifts, too, was bought at the subsidized price of Rs 6.85 a unit.

In 2016, you had a grand opening of your solar roof with the Minister of Power and Energy attending. You bought two-page advertisements in several newspapers to tell the world how environmentally friendly you are. You informed your buyers that you were now “green”. You said your electricity would be cheaper to society in the long run.

By 2022, you have recovered your investment with a profit. In 2023, your company faces reality. Electricity prices went up, and now you do not want to sell it to the grid, but use the production for yourselves. Why? Because you now sell it at Rs 22 a unit but buy it at Rs 37 a unit! Older contracts get paid Rs 15.50 a unit.

Ha ha!

As if the PUC recommendation was written elsewhere within days, the CEB and the LECO were ordered by the government to allow Company X, and thousands of others to do just that.

If yours is Bank B, you are in for a larger windfall. You can “sell” the electricity from your old rooftop unit at Rs 58’ it would otherwise have fetched Rs 15.50. The public that has no proper roof or funds to have solar units, have already paid for your rooftop investment twice over, and now they will pay for your windfall profit, too.

There goes the beauty of renewable energy. Expensive upfront and cheaper in the long-run. No! Not anymore (in Sri Lanka). It is now expensive upfront and expensive in the long-run, too!

This PUC decision to award windfall profits to thousands of solar producers such as Company X and Bank B will immediately cost about Rs 11 billion more per year, which will be passed on to the customers through the next price increase. The price increase will be blamed on the dry weather in February and March 2024.

And what is more, this recommendation will not produce even one more unit of electricity from renewables. Just pay more for already signed agreements, which at that time, promised cheaper electricity to the public in the longer term.

What next? Mini-hydro, wind, solar parks and biomass power suppliers, too, are knocking on PUC’s door asking for more money for their ageing power plants, for which the public have paid many times over. And, that decision, if ever made, will push electricity prices further up. It is only a matter of time.

Do not get it wrong. These decisions will not produce even one more unit of renewable energy, but simply increase their price.

I wish the late Eng. Wimalasurendra were around to claim that Laxapana he strenuously campaigned for and got built, though fully depreciated and paid for by the electricity customers for over three score and ten years, should also be allowed to sell electricity at Rs 37!

So that’s how Sri Lanka’s electricity sector undergoes ‘independent’ regulation by PUC.



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Crucial test for religious and ethnic harmony in Bangladesh

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A political protest that led to governmental change in Bangladesh mid last year. (photograph: imago)

Will the Bangladesh parliamentary election bring into being a government that will ensure ethnic and religious harmony in the country? This is the poser on the lips of peace-loving sections in Bangladesh and a principal concern of those outside who mean the country well.

The apprehensions are mainly on the part of religious and ethnic minorities. The parliamentary poll of February 12th is expected to bring into existence a government headed by the Bangladesh Nationalist Party (BNP) and the Islamist oriented Jamaat-e-Islami party and this is where the rub is. If these parties win, will it be a case of Bangladesh sliding in the direction of a theocracy or a state where majoritarian chauvinism thrives?

Chief of the Jamaat, Shafiqur Rahman, who was interviewed by sections of the international media recently said that there is no need for minority groups in Bangladesh to have the above fears. He assured, essentially, that the state that will come into being will be equable and inclusive. May it be so, is likely to be the wish of those who cherish a tension-free Bangladesh.

The party that could have posed a challenge to the above parties, the Awami League Party of former Prime Minister Hasina Wased, is out of the running on account of a suspension that was imposed on it by the authorities and the mentioned majoritarian-oriented parties are expected to have it easy at the polls.

A positive that has emerged against the backdrop of the poll is that most ordinary people in Bangladesh, be they Muslim or Hindu, are for communal and religious harmony and it is hoped that this sentiment will strongly prevail, going ahead. Interestingly, most of them were of the view, when interviewed, that it was the politicians who sowed the seeds of discord in the country and this viewpoint is widely shared by publics all over the region in respect of the politicians of their countries.

Some sections of the Jamaat party were of the view that matters with regard to the orientation of governance are best left to the incoming parliament to decide on but such opinions will be cold comfort for minority groups. If the parliamentary majority comes to consist of hard line Islamists, for instance, there is nothing to prevent the country from going in for theocratic governance. Consequently, minority group fears over their safety and protection cannot be prevented from spreading.

Therefore, we come back to the question of just and fair governance and whether Bangladesh’s future rulers could ensure these essential conditions of democratic rule. The latter, it is hoped, will be sufficiently perceptive to ascertain that a Bangladesh rife with religious and ethnic tensions, and therefore unstable, would not be in the interests of Bangladesh and those of the region’s countries.

Unfortunately, politicians region-wide fall for the lure of ethnic, religious and linguistic chauvinism. This happens even in the case of politicians who claim to be democratic in orientation. This fate even befell Bangladesh’s Awami League Party, which claims to be democratic and socialist in general outlook.

We have it on the authority of Taslima Nasrin in her ground-breaking novel, ‘Lajja’, that the Awami Party was not of any substantial help to Bangladesh’s Hindus, for example, when violence was unleashed on them by sections of the majority community. In fact some elements in the Awami Party were found to be siding with the Hindus’ murderous persecutors. Such are the temptations of hard line majoritarianism.

In Sri Lanka’s past numerous have been the occasions when even self-professed Leftists and their parties have conveniently fallen in line with Southern nationalist groups with self-interest in mind. The present NPP government in Sri Lanka has been waxing lyrical about fostering national reconciliation and harmony but it is yet to prove its worthiness on this score in practice. The NPP government remains untested material.

As a first step towards national reconciliation it is hoped that Sri Lanka’s present rulers would learn the Tamil language and address the people of the North and East of the country in Tamil and not Sinhala, which most Tamil-speaking people do not understand. We earnestly await official language reforms which afford to Tamil the dignity it deserves.

An acid test awaits Bangladesh as well on the nation-building front. Not only must all forms of chauvinism be shunned by the incoming rulers but a secular, truly democratic Bangladesh awaits being licked into shape. All identity barriers among people need to be abolished and it is this process that is referred to as nation-building.

On the foreign policy frontier, a task of foremost importance for Bangladesh is the need to build bridges of amity with India. If pragmatism is to rule the roost in foreign policy formulation, Bangladesh would place priority to the overcoming of this challenge. The repatriation to Bangladesh of ex-Prime Minister Hasina could emerge as a steep hurdle to bilateral accord but sagacious diplomacy must be used by Bangladesh to get over the problem.

A reply to N.A. de S. Amaratunga

A response has been penned by N.A. de S. Amaratunga (please see p5 of ‘The Island’ of February 6th) to a previous column by me on ‘ India shaping-up as a Swing State’, published in this newspaper on January 29th , but I remain firmly convinced that India remains a foremost democracy and a Swing State in the making.

If the countries of South Asia are to effectively manage ‘murderous terrorism’, particularly of the separatist kind, then they would do well to adopt to the best of their ability a system of government that provides for power decentralization from the centre to the provinces or periphery, as the case may be. This system has stood India in good stead and ought to prove effective in all other states that have fears of disintegration.

Moreover, power decentralization ensures that all communities within a country enjoy some self-governing rights within an overall unitary governance framework. Such power-sharing is a hallmark of democratic governance.

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Celebrating Valentine’s Day …

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Valentine’s Day is all about celebrating love, romance, and affection, and this is how some of our well-known personalities plan to celebrate Valentine’s Day – 14th February:

Merlina Fernando (Singer)

Yes, it’s a special day for lovers all over the world and it’s even more special to me because 14th February is the birthday of my husband Suresh, who’s the lead guitarist of my band Mission.

We have planned to celebrate Valentine’s Day and his Birthday together and it will be a wonderful night as always.

We will be having our fans and close friends, on that night, with their loved ones at Highso – City Max hotel Dubai, from 9.00 pm onwards.

Lorensz Francke (Elvis Tribute Artiste)

On Valentine’s Day I will be performing a live concert at a Wealthy Senior Home for Men and Women, and their families will be attending, as well.

I will be performing live with romantic, iconic love songs and my song list would include ‘Can’t Help falling in Love’, ‘Love Me Tender’, ‘Burning Love’, ‘Are You Lonesome Tonight’, ‘The Wonder of You’ and ‘’It’s Now or Never’ to name a few.

To make Valentine’s Day extra special I will give the Home folks red satin scarfs.

Emma Shanaya (Singer)

I plan on spending the day of love with my girls, especially my best friend. I don’t have a romantic Valentine this year but I am thrilled to spend it with the girl that loves me through and through. I’ll be in Colombo and look forward to go to a cute cafe and spend some quality time with my childhood best friend Zulha.

JAYASRI

Emma-and-Maneeka

This Valentine’s Day the band JAYASRI we will be really busy; in the morning we will be landing in Sri Lanka, after our Oman Tour; then in the afternoon we are invited as Chief Guests at our Maris Stella College Sports Meet, Negombo, and late night we will be with LineOne band live in Karandeniya Open Air Down South. Everywhere we will be sharing LOVE with the mass crowds.

Kay Jay (Singer)

I will stay at home and cook a lovely meal for lunch, watch some movies, together with Sanjaya, and, maybe we go out for dinner and have a lovely time. Come to think of it, every day is Valentine’s Day for me with Sanjaya Alles.

Maneka Liyanage (Beauty Tips)

On this special day, I celebrate love by spending meaningful time with the people I cherish. I prepare food with love and share meals together, because food made with love brings hearts closer. I enjoy my leisure time with them — talking, laughing, sharing stories, understanding each other, and creating beautiful memories. My wish for this Valentine’s Day is a world without fighting — a world where we love one another like our own beloved, where we do not hurt others, even through a single word or action. Let us choose kindness, patience, and understanding in everything we do.

Janaka Palapathwala (Singer)

Janaka

Valentine’s Day should not be the only day we speak about love.

From the moment we are born into this world, we seek love, first through the very drop of our mother’s milk, then through the boundless care of our Mother and Father, and the embrace of family.

Love is everywhere. All living beings, even plants, respond in affection when they are loved.

As we grow, we learn to love, and to be loved. One day, that love inspires us to build a new family of our own.

Love has no beginning and no end. It flows through every stage of life, timeless, endless, and eternal.

Natasha Rathnayake (Singer)

We don’t have any special plans for Valentine’s Day. When you’ve been in love with the same person for over 25 years, you realise that love isn’t a performance reserved for one calendar date. My husband and I have never been big on public displays, or grand gestures, on 14th February. Our love is expressed quietly and consistently, in ordinary, uncelebrated moments.

With time, you learn that love isn’t about proving anything to the world or buying into a commercialised idea of romance—flowers that wilt, sweets that spike blood sugar, and gifts that impress briefly but add little real value. In today’s society, marketing often pushes the idea that love is proven by how much money you spend, and that buying things is treated as a sign of commitment.

Real love doesn’t need reminders or price tags. It lives in showing up every day, choosing each other on unromantic days, and nurturing the relationship intentionally and without an audience.

This isn’t a judgment on those who enjoy celebrating Valentine’s Day. It’s simply a personal choice.

Melloney Dassanayake (Miss Universe Sri Lanka 2024)

I truly believe it’s beautiful to have a day specially dedicated to love. But, for me, Valentine’s Day goes far beyond romantic love alone. It celebrates every form of love we hold close to our hearts: the love for family, friends, and that one special person who makes life brighter. While 14th February gives us a moment to pause and celebrate, I always remind myself that love should never be limited to just one day. Every single day should feel like Valentine’s Day – constant reminder to the people we love that they are never alone, that they are valued, and that they matter.

I’m incredibly blessed because, for me, every day feels like Valentine’s Day. My special person makes sure of that through the smallest gestures, the quiet moments, and the simple reminders that love lives in the details. He shows me that it’s the little things that count, and that love doesn’t need grand stages to feel extraordinary. This Valentine’s Day, perfection would be something intimate and meaningful: a cozy picnic in our home garden, surrounded by nature, laughter, and warmth, followed by an abstract drawing session where we let our creativity flow freely. To me, that’s what love is – simple, soulful, expressive, and deeply personal. When love is real, every ordinary moment becomes magical.

Noshin De Silva (Actress)

Valentine’s Day is one of my favourite holidays! I love the décor, the hearts everywhere, the pinks and reds, heart-shaped chocolates, and roses all around. But honestly, I believe every day can be Valentine’s Day.

It doesn’t have to be just about romantic love. It’s a chance to celebrate love in all its forms with friends, family, or even by taking a little time for yourself.

Whether you’re spending the day with someone special or enjoying your own company, it’s a reminder to appreciate meaningful connections, show kindness, and lead with love every day.

And yes, I’m fully on theme this year with heart nail art and heart mehendi design!

Wishing everyone a very happy Valentine’s Day, but, remember, love yourself first, and don’t forget to treat yourself.

Sending my love to all of you.

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Banana and Aloe Vera

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To create a powerful, natural, and hydrating beauty mask that soothes inflammation, fights acne, and boosts skin radiance, mix a mashed banana with fresh aloe vera gel.

This nutrient-rich blend acts as an antioxidant-packed anti-ageing treatment that also doubles as a nourishing, shiny hair mask.

Face Masks for Glowing Skin:

Mix 01 ripe banana with 01 tablespoon of fresh aloe vera gel and apply this mixture to the face. Massage for a few minutes, leave for 15-20 minutes, and then rinse off for a glowing complexion.

*  Acne and Soothing Mask:

Mix 01 tablespoon of fresh aloe vera gel with 1/2 a mashed banana and 01 teaspoon of honey. Apply this mixture to clean skin to calm inflammation, reduce redness, and hydrate dry, sensitive skin. Leave for 15-20 minutes, and rinse with warm water.

Hair Treatment for Shine:

Mix 01 fresh ripe banana with 03 tablespoons of fresh aloe vera gel and 01 teaspoon of honey. Apply from scalp to ends, massage for 10-15 minutes and then let it dry for maximum absorption. Rinse thoroughly with cool water for soft, shiny, and frizz-free hair.

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