• Three members who approved retrospective interim tariff hike reverse decision
•  Cite fresh knowledge of ‘legal mechanism’
• Entire membership writes to AG querying legality

The three members of the four-member Public Utilities Commission of Sri Lanka (PUCSL) who had written to the Commission’s Chairman Janaka Ratnayake last week conveying their approval for an interim increase in electricity tariffs with retrospective effect from 1 January, as had been approved by the Cabinet of Ministers earlier this month, have since reneged on their decision and have written to the PUCSL again yesterday (23) requesting the Commission to consult the Attorney General (AG) pertaining to the legality of an interim tariff hike with retroactive effect.

When contacted by The Daily Morning yesterday, Commission Member Mohan Samaranayake stated that the Commission members had arrived at the said decision after “learning” about the legal mechanism of interim tariffs with retrospective effect. 

“Earlier, we submitted a letter asking to consider the Cabinet decision. But today (23), we revised our document because there is a doubt regarding the legality of this. What is valid is the document we submitted today, which has been agreed upon by all four members including Ratnayake. In our letter, we have suggested that the Commission seek the Attorney General’s opinion in this regard because an interim measure is not provided for in the PUCSL Act, No. 35 of 2002, or the Electricity Act, No. 20 of 2009. So, there is a need to seek legal advice, not only about the interim tariff revision but also about the retrospective effect as these can be disputed legally. Hence, these matters have to be cleared up by the Attorney General. We revised it after learning about the legal mechanism.”

When queried as to whether the Commission members had handed over their letter to the Cabinet or the Ministry of Power and Energy, Samaranayake stated that they had only submitted the said letter to the PUCSL. “It is the duty of the Commission to convey this to the Cabinet.”

Convening a media briefing on 20 January, Ratnayake noted that the unanimous decision taken by the four Commission members on 12 January to oppose the decision taken by the Cabinet to effect an interim tariff revision with retrospective effect from 1 January, had been reversed on 19 January following a meeting with President Ranil Wickremesinghe which was attended by the three Commission members, namely, PUCSL Deputy Chairman Udeni Wickramasinghe, and members Chathurika Wijesinghe and Samaranayake, as there may have been some influence on the decision of the said three Commission members when they attended the said meeting.

Ratnayake noted that the letter, signed by three members, and had been handed over to the Commission, had requested that the Commission implement the Cabinet decision immediately and to therefore, adjust it as necessary in a future tariff revision.

Speaking further, Ratnayake also noted that the said three members had claimed that they had not had sufficient time to peruse through it and review it.

With the majority of the Commission members being in favour of an interim tariff revision as approved by the Cabinet, Ratnayake noted: “I seek refuge in the law, and I believe that I would receive the support of the law.”

Ratnayake further reiterated that an interim increase in electricity tariffs was against the PUCSL Act and the Electricity Act.

Meanwhile, speaking to the media on 21 January, Minister of Power and Energy Kanchana Wijesekera noted that the recent statements issued by the PUCSL have been statements issued sans receiving the consent of three other Commission members (namely Wickramasinghe, Wijesinghe, and Samaranayake), adding that legal action should therefore be taken against the same. Wijesekera stated that decisions by independent Commissions such as the PUCSL should be taken in consultation with all of its members, not just one, and noted that he would therefore make a written request to President Ranil Wickremesinghe to take legal action against the PUCSL Chairman. 

“At a meeting of the National Council, we found out that the recent statements issued by the PUCSL have been statements made by an individual. This was also proven during the recent press conference held on 20 January by the PUCSL. A lone individual cannot hold the entire country against the wall. There are four members in the Commission, including the Chairman. The decisions made by an independent commission should be taken in consultation with all of its members as there may be those who are for the decision or against it. However, the decisions taken by an independent commission should be taken considering the majority. 

“The PUCSL Chairman himself showed the letter that three members of the Commission had issued to the effect that the decision taken by the Cabinet should be effected immediately. So, we are hopeful that we will receive this in writing today. If we receive it in writing, we will act accordingly. Acting on a single opinion is a serious mistake. Therefore, we propose that the Parliament and the Constitutional Council, which are responsible for the independent commissions, should take action against the relevant individual in this regard. I will make a written request about this to the President as the independent commissions are under his purview, and will make a request to act upon this on legal grounds.”