The public consultation held on Wednesday (8) by the Public Utilities Commission of Sri Lanka (PUCSL) in view of the 66.2% increase in electricity tariffs proposed by the Ceylon Electricity Board (CEB) saw many questioning the accuracy of the said proposal, viewing the economic contraction to be a byproduct of the same.
These observations were shared with The Daily Morning by PUCSL Chairman Janaka Ratnayake following the conclusion of the public consultation.
Ratnayake remarked that the public hearing had been constructive and informative with data analyses being made by prominent professionals and associations.
“They questioned the accuracy of the proposals sent by the CEB; particularly, the demand and contraction that the tariffs will have, considering the contraction we faced last year (2022) and the economic downfall. When the tariffs increase again as they did in August 2022, the demand will come down once again. So, provisions for such have not been considered. Another individual indicated that there were many faults in their proposals. Another matter that everybody highlighted was that the low-income consumers using zero-90 units a month would be greatly burdened by the proposed tariff hike. They questioned ‘where would they have money to pay for electricity?’. It will indirectly decrease the purchasing power of the people and they will probably go from bad to worse.”
Ratnayake further stressed that considering the heavy debts of the CEB, a suggestion had been made to amortise the CEB’s loans and restructure their debts. “This is a very good suggestion,” Ratnyake noted, adding that “in their (CEB) proposal, they talk about debts of over Rs. 200 billion and payments for coal purchases during the off-season. But, even if you increase the tariffs as proposed, these two items will not be covered. It is against the tariff methodology. Again, past losses and payments due for other suppliers like independent power producers cannot be covered with this.”
Ratnayake also noted that a day or two would be required to compile the said information and inform the CEB accordingly. “Then, with their response, we can decide the electricity tariffs.”
When The Daily Morning queried whether the PUCSL will be prepared to grant a verdict on the electricity tariffs by 15 February, Ratnayake said that the same would depend on the response from the CEB to the specific information requested by PUCSL.
Following the approval of the Cabinet of Ministers granted for the increase in electricity tariffs, the CEB submitted their proposal last month (January) to the regulator, the PUCSL, seeking their approval for the same. While the PUCSL is at present evaluating the said proposal, a public consultation was also held on Wednesday as a routine protocol for electricity tariff revisions. While the CEB and Minister of Power and Energy Kanchana Wijesekera have been favouring an increase in electricity tariffs, the PUCSL has been against the same.