• PUCSL Chair claims Cabinet incapable of navigating complexities of electricity tariffs

Whilst stating that the only way to disregard the Public Utilities Commission of Sri Lanka (PUCSL) when revising electricity tariffs is to amend the PUCSL Act, PUCSL Chairman Janaka Ratnayake yesterday (18) questioned that in a country where the Cabinet cannot decide on the price of an egg, how can they decide on something as complicated as electricity tariffs.

Speaking to The Morning on approving an electricity tariff hike without the authority of the regulator (the PUCSL), Ratnayake noted that such is impossible unless the PUCSL Act was amended. 

“The only way to bypass the PUCSL is to amend the PUCSL Act. They have to take the powers of the PUCSL to some other entity. Even amending this Act can be challenged. It is a mistake if they are trying to amend such an important Act. It would be similar to moving to the Stone Age.”

Commenting on reports of measures to approve new electricity tariffs through the Cabinet, Ratnayake said that according to his knowledge, such a move cannot be made. 

“Tariffs are determined by the Ceylon Electricity Board (CEB) and approved by the PUCSL. I don’t think that the Cabinet can do it. There is no provision and possibility for the Cabinet to take a tariff related decision according to the prevailing laws and regulations.”

Meanwhile, when contacted by The Morning to query into the measures to be taken to increase electricity tariffs disregarding the PUCSL, a senior official of the Ministry of Power and Energy, who did not wish to be named, stated that such a move may not be considered by the Ministry. 

The official said: “Although the Cabinet paper for the proposed increase in electricity tariffs has been prepared, it has not yet been submitted to the Cabinet. However, although I am not directly in charge of the electricity tariffs, it may not be done without consulting the PUCSL, because they have the regulatory authority. I spoke to Minister of Power and Energy Kanchana Wijesekera yesterday as well, but I don’t think that this will be forcefully done without the PUCSL.” 

Speaking on the proposed increase, the official noted that although he was not certain of the exact rate, it was a “considerable” increase.

Meanwhile, speaking at a recent media briefing, Sri Lanka Podujana Peramuna (SLPP) Parliamentarian Rohitha Abeygunawardana stated that the Party was not in favour of an increase in electricity tariffs. 

“As the SLPP, we have made a request to the Government, the subject Minister, and President Ranil Wickremesinghe that we are not in favour of increasing electricity tariffs at a time when the people are in distress. What we propose is that we should find an alternative way to secure this amount. In Parliament, I personally told the relevant Minister to think twice about increasing tariffs and he agreed and said that we should discuss this further.”

Stating that the cost of power generation would be increased in 2023 owing to low expected rainfall, Wijesekera stressed the need to increase electricity tariffs without which the public will have to face minimum six-hour power cuts. The President also revealed in Parliament recently that the CEB had incurred losses amounting to around Rs. 300 billion since 2013, and further stated that in the event Sri Lanka faces a drought next year (2023), as predicted, an additional Rs. 420 billion would be required for generation of power, and therefore called for the need to increase electricity tariffs. 

The President, the Ministry of Power and Energy, and the CEB are pushing for a tariff hike while the PUCSL is vetoing the move. The Cabinet approved a quarterly electricity tariff hike last week to be implemented in the months of January and June in 2023, to which Ratnayake immediately responded saying a tariff hike was not necessary.