Connect with us

News

Electricity regulator contradicts Minister; tariff reduction certain

Published

on

Dayasiri and Jayakody

…10% to 20% decrease on the cards

By Shamindra Ferdinando

The Energy Ministry couldn’t intervene in the electricity tariff revision as the exclusive authority to do so was vested with the Public Utilities Commission of Sri Lanka (PUCSL) in terms of the relevant Acts, authoritative sources told The Island.

Energy Minister Kumara Jayakody’s recent declaration in Parliament that tariff revision wouldn’t be implemented for a period of three years had no legal validity, sources said. Minister Jayakody said so in response to a query raised by SJB MP Dayasiri Jayasekera.

The PUCSL would make its position on the tariff revision known to the public on Friday (17), sources said, adding that available data indicated that tariffs could be reduced by 10% to 20%.

Earlier, the Ceylon Electricity Board (CEB) proposed to the PUCSL that tariff revision should be put on hold for six months, beginning January 2025. The PUCSL, appointed by President Anura Kumara Disanayake consists of Prof. K.P. Lalith Chandralal (Chairperson), Piyal Henanayake and Dr. Chathuri Samanmali Fernando.

In terms of the Public Utilities Commission of Sri Lanka Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009, the PUCSL is the regulator, hence its authority couldn’t be challenged by the Minister.

Sources said that the PUCSL considered available data, assessment and information before deciding on tariff revision. The Energy Minister, or the Secretary to that Ministry, could have made representations to the PUC during recent public consultations, sources said, adding that several lawmakers appeared before the Commission recently.

The PUCSL couldn’t be deprived of its authority unless the NPP government amended both Acts, sources said.

Alleging that Minister Jayakody deceived the Parliament with regard to the tariff revision issue, Opposition MP Dayasiri Jayasekera told The Island that he would raise a privilege issue in the House. The issue here is whether the Minister is conversant with the Public Utilities Commission of Sri Lanka Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009.

The Minister seemed to have ignored the fact that the Wickremesinghe-Rajapaksa government, in 2023, began introducing four tariff revisions annually. Before that, tariff revisions were effected twice a year.

The last revision was in July 2024 when the PUC reduced power tariffs by 22.5% against the backdrop of the CEB claiming that the maximum affordable was just 3%.

The CEB has requested that the PUCSL revert to the old system as four revisions a year seemed an unnecessary exercise.

We quoted SJB trade unionist Ananda Palitha in yesterday’s issue (13 January) of The Island that electricity tariffs could be reduced by as much as 35% as ,contrary to CEB’s claims, the state enterprise earned significant revenue gains, running into billions of Rupees.

Lawmaker Jayasekera pointed out that Minister Jayakody declared in Parliament that the NPP never promised an immediate electricity tariff revision. That declaration was contrary to President Anura Kumara Disanayake’s assurance, in the run up to the presidential election, that one third of the electricity bill would be reduced, along with the fuel price.

However, the electricity tariff revision was to be announced in October 2024, in line with the previous government’s decision to implement four revisions annually, the former Minister said.

Referring to revisions, both increases and reduction in electricity tariffs, sources pointed out that on every occasion, since 2022, the PUCSL had no option but to disagree with the CEB’s false assessments for obvious reasons. The CEB always proposed higher increases and low reductions in line with their overall strategy, sources said, emphasizing the responsibility on the part of the Ministry to engage the PUCSL.

The government must realise that the PUCSL is the economic, technical and safety regulator of the electricity industry, and the designated regulator for petroleum and water services industries as well. The PUCSL also has been assigned as the shadow regulator for the lubricant market in Sri Lanka.



Latest News

Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya

Published

on

By

The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].

Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district

Continue Reading

News

Prez seeks Harsha’s help to address CC’s concerns over appointment of AG

Published

on

Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.

Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.

Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.

He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.

Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.

He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.

As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.

In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.

“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.

By Saman Indrajith

Continue Reading

News

Govt. exploring possibility of converting EPF benefits into private sector pensions

Published

on

The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.

Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.

“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”

Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.

He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.

Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.

Of 744 applications received for such withdrawals, 702 had been approved, he said.

The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.

Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.

Continue Reading

Trending