• PUCSL Chair wants proposal with facts and figures
• Takes Kanchana to task for unilateral tariff hike pronouncement

Although the Public Utilities Commission of Sri Lanka (PUCSL) sees no basis for a hike in the electricity tariffs evident at this juncture, should a valid reason for an increase be provided in the Ceylon Electricity Board’s (CEB) proposals, it will have to consider an increase in tariffs, said PUCSL Chairman Janaka Ratnayake, while adding that Minister of Power and Energy Kanchana Wijesekera cannot make unilateral declarations to confirm a tariff hike without consulting the regulator.

Ratnayake made these remarks while speaking to The Morning yesterday (22).

Stressing that mere weather-related predictions cannot be a determinant for an increase in electricity tariffs, he said: “The price escalation should be based on facts and figures and not on weather predictions. The Ministry is not in a position to make such predictions because with the weather conditions in Sri Lanka, such attempts will never work out. When the PUCSL decides on tariffs, it would be determined in line with next year’s (2023) demand and supply, which should be based on facts and figures as well as the power generation capacity. They say that they need a certain amount of funds for diesel and coal, but we cannot allow tariff hikes based only on these factors. If the proposal that is submitted to the PUCSL contains valid facts and figures, the PUCSL has to agree to a tariff increase. However, if the request is not scientific enough, it will not be increased.”

Noting that the PUCSL does not perceive a need for a tariff hike at the given moment, Ratnayake added that Wijesekera cannot make such statements regarding said hike. 

“At this point, with the facts available to us, we think that a tariff hike is not required. But we do not know the full argument until the proposal is handed over to us, and therefore, Wijesekera cannot confirm that there will be an increase. The decision will be taken after many deliberations by the PUCSL based on facts and figures. As the subject Minister, he should be aware of the Electricity Act and the PUCSL Act. If he was aware of these, he would not make such statements.”

Speaking further, he also opined: “Before the tariff hike back in August 2022, Wijesekera was opposed to it, saying that the CEB has incurred excessive expenditure and that the revision requested was therefore unfair. Now, the same individual is stating that there must be an increase.”

Commenting on Wijesekera’s statement that Ratnayake may have some desire to enter politics through the Parliamentary National List, the latter stressed that he had no such intention. 

“My affiliations with politicians date back to 2000. I would have entered politics long ago, but I have no intention whatsoever to become a Minister or an MP. I would rather remain a duty-bound civilian and successful businessman.”

The increase in electricity tariffs in January 2023 is definite, said Wijesekera at a media briefing held on Wednesday (21). He also noted that a detailed report will be handed over to the Cabinet at the upcoming Cabinet meeting pertaining to the tariff hike. 

“At the next Cabinet meeting, which will most probably be on 2 January 2023, a complete report on why an electricity tariff increase is needed, the manner in which it should be increased, and other essential information will be submitted to the Cabinet in detail. And in January 2023, a price revision will definitely occur.”

The Minster added that once the approval of the Cabinet is obtained, the report will be handed over to the regulator, the PUCSL, to be implemented.

The Cabinet approved a quarterly electricity tariff hike to be implemented in the months of January and June in 2023, to which Ratnayake immediately responded saying a tariff hike is not necessary.