- Urge Comm. to rectify past errors and make inde. decisions
Revealing that there is a possibility to reduce the electricity tariffs by 20-25% in the current situation, the Employees' Union of the Public Utilities Commission of Sri Lanka (EUPUCSL) has urged the Commission's Chairman and other members to rectify their previous 'mistakes', and make independent decisions regarding the proposed tariff revision.
In a letter addressed to the PUCSL Chairman and members, ECPUCSL General Secretary Roshan Weerasooriya had noted that the Commission plays a vital role in ensuring transparency, accountability, and fairness in regulating the electricity sector. He had said that it is a key responsibility upon the Commission to conduct thorough assessments of tariff-related proposals, considering various factors such as generation costs, weather forecasts, consumer interests, and stakeholder feedback.
“In the case of the tariff revision made in October of last year (2023), we believe that significant shortcomings in the tariff review process have led to a breach of consumer trust. Despite the public consultation to gather stakeholders' views and comments on the tariff revision, the Commission has failed to adequately consider these inputs before approving it. The CEB's tariff proposal was approved as it was, on the following day, disregarding the inputs of the Tariff Division. This has eroded consumer confidence in the transparency and fairness of the Commission's decision-making process.”
Considering the matter, Weerasooriya said that it is imperative that the Commission Chairman and members rectify these mistakes and arrive at independent decisions with the highest standards of transparency, accountability, and consumer protection with regard to the currently proposed tariff revision.
As per the analysis conducted based on the tariff proposal submitted by the Ceylon Electricity Board (CEB) and the latest financial statement of the CEB, the letter read, it is evident that the electricity rates could be reduced by 20-25%.
Urging the Commission's Chairman and members to arrive at a decision on the tariff revision based on an impartial analysis, expert opinions, and the concerns of the stakeholders, the EUPUCSL stated that they would look forward to working together with the Commission to strengthen the regulatory processes and to serve the best interests of all stakeholders. They had also asked for a meeting with the Commission members including its Chairman as soon as possible to discuss the matter.
The Electricity Consumers' Association (ECA) had also requested the PUCSL on Tuesday (13) not to consider the alleged arbitrary expenses incurred by the CEB in approving the proposed electricity tariff revision. In a letter addressed to the Commission, the ECA had claimed that the CEB had paid high prices for emergency power purchases in violation of the approved prices.
“They have paid a high price of Rs. 120 for an electricity unit after obtaining the relevant approval, indicating that they will pay only Rs. 56 per unit. More than Rs. 3 billion has been misused through this. It is not possible to consider such expenses as expenses of the CEB,” the letter read.
The letter further revealed that the CEB had allocated more than Rs. 5 billion for unlicensed power plants this year (2024), which the ECA stated was also not an expense that could be considered in determining electricity tariffs.