SJB trade unionist:

… alleges current pricing formula helps fleece consumers

by Shamindra Ferdinando

Alleging that the Ceylon Electricity Board (CEB) had sought to put off the scheduled power tariff revision, on the basis of false data and assessment provided to the Public Utilities Commission (PUC), prominent SJB trade union activist Ananda Palitha yesterday (12) said that the PUC could grant as much as 35% reduction in rates. Power and Energy Minister Kumara Jayakody told Parliament last week that electricity tariffs would not be reduced soon but the government had decided not to increase electricity tariffs further in the future.

Convener of the Samagi trade unions and consumers collective Ananda Palitha said so in response to The Island query after having made representations to the PUC, along with other interested parties, during public consultations held in respect of the impending tariff revision expected to be announced this coming Friday (17).

Taking into consideration substantial profits earned by the state enterprise, the PUC could order the CEB to implement tariff revision, Ananda Palitha said, pointing out that the CEB, in early December last year, informed the PUC of its inability to grant relief during the January-June 2025 period.

In terms of a decision taken by the Wickremesinghe-Rajapaksa government, the PUC was to implement four tariff revisions annually, the trade union leader said. Responding to another query, the former UNPer alleged that regardless who wielded political power the CEB always tried to minimise tariff reductions. Thanks to PUC’s interventions, electricity consumers received a 21.9% decrease in rates in March 2024, though the CEB proposed only a 4% decrease, Ananda Palitha said.

In July 2024, the PUC had declared a 22.5% decrease though the CEB proposed only 3% reduction, Ananda Palitha said, adding that the next revision was to be announced in October 2024, soon after the presidential election.

President Anura Kumara Disanayake had assured the public of a substantial drop in electricity tariffs as he knew of the impending revision but the CEB implemented its usual strategy to deprive the consumers of much needed relief, Ananda Palitha said. Had President Disanayake appointed members to the PUC at the time he made appointments to the CEB, the PUC could have intervened, Ananda Palitha said. The PUC consists of Prof. K.P. Lalith Chandralal (Chairperson), Piyal Hennanayake and Dr. M. Chathuri Samanmali Fernando.

Ananda Palitha said that tariff revisions hadn’t been implemented after the July 2024 change and the CEB was making a determined bid to derail the whole process, with the backing of the new government. President Disanayake owed the public an explanation why he continued to delay the promised tariff reduction, knowing the significant decrease in costly thermal generation.

Declaring that he, along with several other concerned persons, recently made representations to the PUC regarding the responsibility on its part to provide relief to the hapless consumers, Ananda Palitha alleged the NPP government, too, seemed to be wholly disinterested in electricity consumers’ woes.

Having won both the presidential and parliamentary elections, the NPP was now playing a different tune, Ananda Palitha said, finding fault with Power Minister Kumara Jayakody for trying to mislead Parliament. The political activist said that over and over again, the CEB had been badly exposed for furnishing false information and making wrong assessments to the PUC, though no remedial measures were taken.

Ananda Palitha mentioned three specific instances when the PUC proved the CEB data and assessments utterly wrong. In August 2022, the CEB proposed a 110% increase in tariffs though the PUC permitted a 75% hike, whereas in February 2023 the CEB proposed 85% increase but the PUC brought it down to 66%.

In July 2023 when the CEB declared that the maximum downward revision that could be granted was 3%, the PUC reduced the rates by 14.2 percent, Ananda Palitha said.

The CEB’s response couldn’t be obtained as the position of spokesperson remained vacant.

Ananda Palitha said that the government should also look into the CPC earning unconscionable profits at the expense of the public by supplying diesel required for thermal generation at much higher prices. The issue at hand is that successive governments have allowed the CPC to manipulate the entire process thereby causing heavy burden on the electricity consumers, Ananda Palitha said, adding that both the CEB and CPC should be held responsible for this unfortunate situation.

The SJBer questioned the rationale in the CEB procuring its supplies from the CPC at the same prices as ordinary consumers. Electricity tariffs couldn’t be substantially reduced as long as the government allowed the high-handed manipulation involving the top management of the CPC and CEB to continue.