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President’s energy directives ignored by the Power Ministry: Another Point of View

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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.



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Opinion

An island of Pain and Destruction?

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When there are several ‘tivus’ in the North, why was Iranativu selected for Muslim Covid burials? Why select an island with people living there, with Catholic priests, too? Why not an island with no humans at all: Is that so difficult for the Burial Experts in the Covid management?

Looks like the disposal of dead bodies, if they happen to be of Covid-infected Muslims, is the biggest problem Sri Lanka is facing  today. This is bigger than any economic issue, or any other aspects of development the country and people may be facing. It looks like there is no possibility for a “Saubhagye Dekma” or Vision of Prosperity & Splendour if any Covid Muslims are buried in this Sinhala Bauddha Dupatha.

We tried to send these bodies all the way to the Maldives, on an official request. But failed. This time it is Iranativu – and once again a failure.  So why not keep trying at Neduntivu, Sampaltivu, Vidataltivu or any other ‘tivu’ in the North or East; and till a suitable place is found, keep the dead bodies frozen at taxpayer expenditure? 

Now that the US has decided to take some un-Trump moves about Saudi Arabia, why does not the former and present US citizens  that rule Sri Lanka, think of sending all Covid Muslim corpses to Saudi Arabia, for sacred burials? With the Saudi leaders thinking of new plans for investment, Sri Lanka could become a new target of Saudi funds pouring in. But will this lead to the Sri Lankan Muslims getting any stronger than they are now?

Or, will we wait till we discover or develop a new “Gotativu or Nandasenativu” off Sri Lanka, an Isle of Saubhagya?

Are the Indian Aircraft flying in the special  70-year celebrations of the Sri Lanka Air Force an assurance of new Indian warmth  in Sri Lanka-India relations?  Did the power of the Indian Air Force, displayed over Galle Face Green, make the government take a quick pro-Indian decision on the West Container Terminal (WCT) in the Port of Colombo? 

Can President Gotabaya or PM Mahinda give any explanation why handing over the development of the WCT to the same Indian company, involved in the ECT, could be any better for Sri Lanka? Apart from the Port Trade Unions  that are likely to launch a new protest, will the Weerawansa-Gammanpila-Vasudeva team also carry out protests about the WCT? Or, will they be silenced by the realities of pro-Gotabaya Politics? 

Has Gotabaya Team’s new position that the Provincial Council elections will be held under the new Constitution, an assurance given to India  that the 13h Amendment will remain part of the structure of governance in Sri Lanka? What happened to all those voices of the Pohottuva political players who had virtually written off the 13A? Have they been silenced by the flight of Indian aircraft in the Air Force celebrations?

The Nandasena Gotabaya Team of the Rajavasala had better think of how the yellow robes of sections of the Maha Sangha would react to the WCT deal with India? 

The problems of Iranativu and the WCT or Muslim burials  and the Port of Colombo are certainly pushed back by the realities of Geneva. The Sri Lankan TV stations that have been very strong in their criticism of Michelle Bachelet, the UN Human Rights Commissioner, about her handling of Human Rights, have given big coverage to her statements critical of the Myanmar coup and its military leaders. Will Michelle Bachelet have a big score against Sri Lanka? Keep guessing.

The issues facing Sri Lanka in Geneva are more about the policies of the present Gotabaya-Mahinda Rajavasala, than issues involving the defeat of the LTTE and matters of responsibility and accountability in the post-war period. 

The Easter Carnage that took place, long after the end of the war against LTTE terror, and under the previous Sirisena-Wickremesinghe Yahapalana regime, is certainly at the height of the Rajavasala problems today. Having promised the people that the truth about this carnage will be found and revealed, and the planners and manipulators identified and punished, the Rajavasala is trying to escape its promises and responsibilities. 

This is certainly no easy task as it involves the hopes and expectations of many thousands who voted for the Gotabaya and the Pohottuva at the last Presidential and General Elections. Just look at the thousands in the Wattala-Negombo area who turned away from the UNP, did not support the Sajith Premadasa – Telephone, – and voted for the Pohottuva. It was the biggest Catholic turn away from the UNP, as took place in votes for the left in 1956.

We are now moving to a Black Sunday, when Catholics have been asked to wear black in protest at church services, seeking divine intervention to reveal and punish the Easter Sunday killers nearly two years ago. The response that divinity will provide remains to be seen, but with the voice of the Catholic Cardinal echoing the pain of hundreds who have suffered in this carnage, we are certainly moving to a period of much sorrow and even disaster.

Black Sunday may come and go, but by April this year, when black flags are to fly over houses, mainly Catholic, throughout the country, we certainly face a new rise of a major Majority/Minority conflict. Do we have to think of the possible revival of all the pains of the war against the LTTE terror, or think more in terms of peace and cooperation among people, with or without divine intervention.

This will certainly not be easy in the coming months, as we see so much of nature destroyed, forests cut down, sand mined and transported without permits, the greenery of the country rapidly vanishing and only hearing the call of a painful Saubhagya! 

Will the call for Divine Help bring us to be an Isle of Peace and Understanding, and not a large Isle of Pain and Destruction?

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Go forth boldly against global enemies

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At the UNHRC meeting the true friends of Sri Lanka emerged to speak and defend the country battered mercilessly for defeating the world most brutal terrorist organization, i.e., Tamil Tiger terrorists in 2009, who held 20 million Sri Lankans to ransom for well over 25 years.

Leading the Sri Lanka bashing were the UK. Germany. Canada, Switzerland, the Netherlands. Belgium and the USA, all of them having a chequered history in violating human rights at different times. India, our friendly neighbour, while thankfully taking a fair distance from the punitive stance of others, opted to emphasize on “the rights of Sri Lankan Tamils and their ‘aspirations’ insisting on the FULL implementation of the 13 A”. India should be requested to point out whether any Tamil person in Sri Lanka is deprived from enjoying a basic right because he or she is being purely a Tamil. On the 13th A, which was thrust on Sri Lanka along with the so-called Indo-Sri Lanka agreement, most Sri Lankans are of the view that it was a faulty restructuring effort of Sri Lanka’s government by India, and the Police and Land powers under the 13 A are a direct threat to the sovereign Sri Lanka. Further, the Provincial government system has not benefited Sri Lanka in any measurable manner, and has been an exercise in colossal wastage of hard-earned funds of the central government.

As regards aspirations, we are amazed how we can consider ONLY the aspirations of Tamils, as all other ethnic groups and the individuals too have aspirations, and it will be impossible to walk that talk. We need further training in the recognition of aspirations of different groups from India, and we pray for further comments from the HR specialists in India how they have reconciled the aspirations of other than Hindu religious groups — Sheiks, Kashmiris and other minority groups in Northernmost India.

But, many nations at UNHCR rejected the proposition of the Sri Lanka bashers who directly and indirectly were supportive of the LTTE armed insurrection and the separatism, threatening the unitary Sri Lanka. They also rejected the ‘the preventive prescription’ of the Secretary General Bachelet. The nations who supported Sri Lanka stood for the principle of non-interference in the internal affairs of a democratic country. Any weaknesses in Sri Lankan affairs should be allowed to be rectified domestically, in keeping with the constitutional provisions of the country, rather than to be dictated and decided upon by the holier than thou sloganeers. Most of the nations who attempt to foist their plan on Sri Lanka are from the Western bloc who killed and maimed millions of persons living in the colonized countries and subsequently destroyed other nations as pawns of the world power games. Their “adherence”to human rights are completely at variance with their practices on the ground.

Now, Sri Lanka should re-examine their directions and resolve to work with the friendly nations who supported her to extricate from the trap laid out by the countries who desire an unstable Sri Lanka. The Government and the people should resolve to reduce our dependence on Sri Lanka bashers, and re-design our imports to suit the geo-political reality and to avoid any plot to impose sanctions by the wounded nations. Time has arrived to consider the nation’s priorities by curtailing the luxuries even for a given period. We should try to get our requirements from the friendly nations, and try to improve our trading relationship with our friends.

This the ONLY way to extend our hand to REBUILD a new world order, to be less dependent on the predatory countries who always insist on their pound of flesh from the developing nations. While we thank the President, the Minister for Foreign Affairs, and the Government for having rejected co-sponsorship of resolution 30/1 at UNHRC, we urge the Government to plan to reshape our trade and foreign relations, to play our role as an independent member of the international community.

 

RANJITH SOYSA

 

 

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Gama Samaga Pilisandara  Round 2

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Gotabaya Rajapakse’s election manifesto “Vistas of Prosperity and Splendour” says on its page 4, “This policy document tilted ‘A Vision for a Resurgent, Prosperous Country’ is the result of a series of discourses, ‘interaction with the village’, conducted in 25,000 villages throughout our country during the past one year. We have identified the requirements of housing, electricity, drinking water, access roads, and irrigation facilities in every village”. That is about 65 villages per day and as we have only about 14,000 Grama Niladhari (GN) divisions, coverage would have been about 100 GN divisions in a day. Whatever it is, why did the President decide to repeat this discourse? Is it because he does not accept what was given in his Manifesto as true or is he trying to restore the trust people had in him which is fast dwindling? President may also be thinking that as most of the masses in urban areas who voted for him have become disillusioned with his government’s performance, it would be more prudent to resolve some minor issues in the villages and keep them still faithful to him.

 Rohana Wijayawardhana

 

 

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