In a landmark decision, the Supreme Court recently ordered the Ceylon Electricity Board (CEB) to pay a compensation of Rs. one million to the Vavuniya Solar Power (Private) Limited Co. following the hearing of a Fundamental Rights petition filed by the latter regarding failure to provide a licence to establish a renewable energy plant over several years. The SC also found fault with the State-owned renewable energy regulator, Sri Lanka Sustainable Energy Authority (SEA), for failing in their duty, and ordered the CEB to issue a licence for the business.

The court’s decision comes years after Sri Lanka announced a target of generating 70% of the national electricity requirement from renewable energy, decided more than two years ago. It also comes in the wake of multiple power supply crises, which the Sri Lankan public have faced over the last decade. It is a fact that renewable energy sources like solar, wind and wave power cost a fraction of that is spent on energy generated by burning fossil fuel. Last year, when Sri Lanka was struggling to source US dollars to purchase the necessary coal, crude oil and petroleum products such as petrol and diesel, have we had more renewable energy absorbed to the national supply grid, the impact of the forex crisis would have felt less.

The decision is widely seen as a win for renewable energy in Sri Lanka, as it is no secret that its ingress to Sri Lanka’s troubled energy sector has been facing strong resistance from the utility provider and other state authorities. While some citizens are of the view that the judiciary in Sri Lanka is slow and outdated, it would be beneficial if more organisations, and entrepreneurs who are unfairly restricted by the state institutions, would take them to task before law.  If many of them were to move against the unfair delays they have been faced to endure by the CEB and the SEA as a class action, it may force the utility provider and the regulator to pull up their socks and do their duty properly. The fact that this matter had to go to courts to be resolved and was not addressed by the regulator, is also an indication that the regulatory process is not working properly.

Now that the CEB has been held responsible, what will its management or the Ministry of Power and Energy do about it? Will they hold the responsible officials to task? Will there be disciplinary action taken? Will there be action taken to hold those accountable, responsible? Likely not. The lack of transparency in the government mechanism and the state institutions will also make it difficult to find out. Has the CEB taken tangible action against those responsible for malpractice or sabotage which led to islandwide power outages over the recent past? There is little in the public domain to indicate such.  Further, while the courts have given the order for compensation to be paid, is it fair that the taxpayers funds, or in this case the consumer foots the bill for the mistakes the CEB has made? When the CEB pays the compensation, it will be from their funds, and the loss would be recovered from the consumer later on. Shouldn’t there be a mechanism for the officials who were responsible to foot the bill? The Government has initiated a reforms programme to restructure the State-owned Enterprises, which have been accumulating billions of money in debt over decades, such as the CEB. However, will the Government or the CEB take action to deduct the compensation from the salaries and benefits of the officials who are responsible for such action? Likely not.

Some energy experts view the lethargy of the CEB, SEA and other state agencies to facilitate the low-cost and more environmentally friendly source of energy, as the work of the well-established ‘fossil fuel mafia’, which is suspected to have been giving kickbacks to their politician friends for decades. Therefore, the public must wake up to face the realities that while the law can correct wrongs, only a change in culture, both social and political can bring in a significant and lasting change which would allow Sri Lanka to prosper. However, the Courts have given a sign that change is possible, and that those who are accountable can be taken to task. It will all begin by changing the way the bureaucracy manoeuvres in the     existing system.