• Regulator says retrospective interim tariff revision contrary to Electricity Act
• CEB notes tariff revision in effect from 1 Jan. once Cabinet approval received in writing, until PUCSL says further revision required 

The Public Utilities Commission of Sri Lanka (PUCSL) will be forwarding a letter addressed to the Secretary to the Cabinet of Ministers today (13), whilst copying the Ceylon Electricity Board (CEB) and the other relevant agencies, stating that the interim electricity tariff revision approved by the Cabinet with retrospective effect from 1 January is in violation of the Electricity Act, No. 20 of 2009.

Meanwhile, the CEB stated yesterday (12) at a media briefing that once the approval of Cabinet is received officially in writing, an interim tariff hike from 1 January will be effected until the recommendations of the PUCSL are received, following which, if the regulator necessitates a decrease in the proposed tariffs, the CEB will implement the same from 1 January.

Speaking to The Morning yesterday, PUCSL Chairman Janaka Ratnayake stated that he had officially received the Cabinet decision from the Cabinet Secretary requesting that the PUCSL implement an interim tariff adjustment with retrospective effect from 1 January. Ratnayake noted that he was responding to the Cabinet Secretary today, while copying the CEB and the other relevant agencies, stating that this was against the law. 

“An interim tariff adjustment with retrospective effect is contrary to the Electricity Act of 2009. We will be responding to them in writing tomorrow (13).” 

Ratnayake reiterated that effecting a tariff revision without the approval of the regulator was not a possibility.

Meanwhile, CEB Chairman N.S. Ilangakoon, speaking at yesterday’s press briefing, noted that if an interim increase in electricity tariffs with retrospective effect from 1 January was against the law, as previously stated by Ratnayake, the PUCSL should inform the CEB of such in writing. Ilangakoon made these remarks in response to a query put forward by the media. 

“If they (the PUCSL) state it to us in writing, we will discuss it. We have already put forward our request so they can look into the legality of it,” he said.

Speaking at the same media briefing, CEB General Manager Eng. Rohan Seneviratne noted that Cabinet had granted approval for an interim tariff increase as per the proposal put forward by the CEB for a duration of approximately one month. He further noted that once the recommendations of the PUCSL have been received, the electricity tariffs will be amended accordingly. 

“We have submitted all our data to the PUCSL. They can evaluate it and by 15 February, they should provide us with the tariff revision. Temporarily (until 15 February), the revision will be according to our proposal (which was handed to the Cabinet). From 15 February, the PUCSL-approved tariff revision will be effective. We will also look at how they (PUCSL) will be calculating it,” he said. 

“If the PUCSL recommends a decrease in the proposed electricity tariff revision, we will reduce it accordingly from 1 January. This is the advice that we have received for now, and therefore, we will act according to this.”

According to Seneviratne, the fixed rates per month for the domestic sector are: consumers of 0-30 units who were previously charged at Rs. 120 will be charged Rs. 400; consumers of 31-60 units who were previously charged Rs. 240, will be charged Rs. 550; consumers of 61-90 units who were previously charged Rs. 360, will be charged Rs. 650; consumers of 90-180 units who were previously charged Rs. 960 will now be charged at Rs. 1,500; and those who consume above 180 units, who were charged at Rs. 180 will now be charged at Rs. 2,000. The fixed rates per month for religious institutions are: consumers of zero-30 units who were previously charged Rs. 90 will now be charged Rs. 400; consumers of 31-90 units who were charged Rs. 120, will now be charged Rs. 550; consumers of 91-120 units who were charged Rs. 120 are to be charged Rs. 650; while consumers of 120-180 units who were charged Rs. 450 will be charged Rs. 1,500 as per the proposed electricity tariffs approved by the Cabinet.

The Cabinet granted their approval for an interim increase in the electricity tariffs following a Cabinet paper put forward by the Minister of Power and Energy Kanchana Wijesekera. A statement issued by the Government noted that there is no other option but to revise the existing electricity tariffs in order to ensure a continuous electricity supply in the country while minimising the impact on electricity consumers as much as possible. 

Accordingly, the Cabinet had granted approval to proceed as follows: “The PUCSL will further study the proposed revision of electricity charges submitted by the CEB and if any revision is required, should submit the same on or before 15 February. Until then, the CEB and the PUCSL will jointly take necessary measures to implement the electricity tariff revision proposed by the CEB with effect from 1 January as an interim measure in accordance with the amendments to the public policy guidelines currently in force regarding the power Industry. If the PUCSL submits any amendments, the CEB will take steps to implement those amendments and make the necessary adjustments to future monthly electricity bills.”

Speaking to The Morning on Tuesday (10) pertaining to the Cabinet approving an interim tariff revision effective from 1 January in accordance with the amendments to the public policy guidelines currently in force regarding the power industry, Ratnayake noted: “Under the general policy guidelines, there is no provision for an interim adjustment of electricity tariffs. So they cannot increase tariffs to have a retrospective and retroactive effect. There is no such thing in the law. If the Cabinet can make such a decision, what is the need for a regulator?”