CEB profit over Rs 277 billion for 2023 and 2024

Power tariff revision:

By Shamindra Ferdinando

Alleging that the Ceylon Electricity Board (CEB) habitually provided false assessments to the Public Utilities Commission (PUCSL), United Republic Front (URF) leader and former Power and Energy Minister Patali Champika Ranawaka has said that revision of electricity tariffs shouldn’t be done in accordance with the CEB’s proposals.

Appearing before the PUCSL recently, the ex-lawmaker, who himself is an electrical engineer, pointed out that the assessments that had been provided by the CEB during the past couple of years proved to be inaccurate.

The PUCSL has called public consultations ahead of its announcement of power tariff revision, scheduled for this coming Friday (17).

The Jathika Hela Urumaya (JHU) stalwart Ranawaka refrained from contesting the last parliamentary election held in Nov, 2024 after failing to reach a consensus with the Samagi Jana Balawegaya (SJB) regarding nominations.

The former lawmaker said that in spite of the change of government, the CEB continued to adopt the same tactics. Ranawaka pointed out the CEB has again claimed that electricity tariffs couldn’t be reduced during January-June, 2025 period, as it anticipated heavy losses. Accusing the CEB of trying to deprive electricity consumers of much needed relief, the former SJB MP said that the CEB adopted a similar posture last year.

Ranawaka alleged that the Board’s proposals made to the PUCSL in 2024 were duplicitous. At the March 2024 revision, the CEB claimed that it could afford only 3.4% decrease in electricity tariffs but the PUCSL after having listened to representations made by various interested parties, including himself, granted a sizeable 21.93 reduction.

The Wickremesinghe-Rajapaksa government in 2023 introduced four tariff revisions annually. Ahead of the second revision for 2024, scheduled for July, the CEB claimed that the maximum reduction it was ready to offer was 4.63 %, but the PUCSL disagreed and declared 22.49% drop, Ranawaka said.

In the wake of the change of government in Sept, 2024 consequent to presidential election, the revision scheduled to be implemented in Oct, was discarded. The Dec, revision, too, was ignored. Ranawaka said that the CEB in Dec, 2024 sought to extend the moratorium on tariff revisions till June 2025.

In spite of the PUCSL granting 21.93% and 22.49% decrease in power tariffs in 2024, contrary to CEB’s proposals, the state-enterprise received Rs. 140.59 bn profit in that year. In addition, due to depreciation of CEB property, a further Rs 37 bn had been received thereby increasing the total profit to a staggering Rs 177.6 bn, Ranawaka said. In 2023, too, the CEB earned profit of nearly 100 bn including depreciation, the former Minister said, pointing out that the CEB charged hapless consumers for all its corruption and mismanagement as well.

Ranawaka emphasised that altogether the CEB earned over Rs 277 bn profit for 2023 and 2024 at the expense of electricity consumers – each of them were charged on average Rs. 33,000 extra for that period.

The former Minister urged the PUCSL to take tangible measures to pay consumers back.

Yahapalana Power and Energy Minister Ranawaka recalled how the CEB tried to deceive him when he met the top management on January 15, 2015. Projecting a loss of Rs 45 bn in 2015, the CEB opposed the government proposal to do away with fuel adjustment charge though it was done, Ranawaka said, adding that the unit price was brought down to Rs 15 from Rs 16.20. At the end of 2015, the CEB recorded Rs 20 bn profit after having falsely projected a loss of Rs. 45 bn, Ranawaka said.

Recalling that JVP trade union activists protested against his intervention in 2015, the former minister has urged the PUCSL not to go by the data and assessment provided by the Electricity Board but take a decision for the benefit of the people. The minister stressed the responsibility on the part of the PUCSL to ensure implementation of sustainable electricity tariff policy. The ex-lawmaker estimated that 20 % of local industries had been closed down due to extremely high tariffs charged by the CEB.

Referring to energy minister Kumara Jayakody’s declaration in parliament on January 09 that the CEB had to pay Rs 322, Ranawaka alleged that was a misinterpretation of facts and a false narrative. The public couldn’t be deceived with such false claims as the Auditor General has quite clearly set the record straight.

The AG observed that all trade payables as at 31st December 2023 has been consistent with the related expenditure incurred during 2023 and those expenditures had been fully recovered from the tariff revision made at 2023. The AG said that loan repayments to be made during the year 2024 was only Rs. 63.9 billion, Accordingly, accumulated financial loss of the CEB had been recovered by the Electricity tariff increases, the government subsidy for CPC fuel payments (Rs.206.271 million) and converting CEB debts (Rs. 372,105 million) into equity in 2022.

Ranawaka urged the PUCSL to derail the CEB’s despicable strategy. The former minister also pointed out how the CEB adopted a worker-friendly system in granting salary increase but was not prepared to handle tariff revisions in a just manner.

The URF leader said that the NPP government was dancing to the tune of the IMF and went all out to collect taxes regardless of consequences