roadBlockAd
brand logo

Kanchana defends electricity tariff hikes as SJB protests

30 Aug 2022

  • Says showing increases in percentages gives wrong picture
  • Claims lower level consumers provided relief rates
  • SJB protests tariff hike outside Parliament
  • Kabir seeks financial support for groups affected by hikes
BY Buddhika Samaraweera and Buwanajee Coralage   Amidst protests outside Parliament and fierce debates in Parliament against the recent increase in electricity tariffs, Minister of Power and Energy Kanchana Wijesekera defended the tariff increase in Parliament yesterday (29), claiming that when the increments are presented in percentages, they paint an inaccurate picture. The Minister explained that monthly electricity bills that were extremely small were increased to cover production costs, while providing rates at a relief price for consumers with lower consumption patterns. “This is misleading when illustrated in percentages. It reads as increments by 250%, 75%, and sometimes even 350%, creating alarm. However, for the approximately 1.4 million households that consume between 0-30 units. They were paying only a maximum of Rs. 105 for their electricity usage monthly. Now this has been increased to Rs. 360. When taken as a percentage increase, this might seem like a lot but today with inflation and all, there cannot be anyone who can’t afford to pay Rs. 360 as their electricity bill with even the price of a loaf of bread being Rs. 200,” Wijesekera told Parliament. He added that the cost of generating this amount of electricity is around Rs. 1,500 and that it is yet being offered at Rs. 360, and that this is a relief, not a burden, for the consumer. “Consumers who use between 31 and 60 units is the next largest segment with 1.1 million households, and this group was paying only Rs. 280 a month for 60 units. That is the amount that has been increased to Rs. 780,” he added. Speaking further, Wijesekera explained how the price increments in diesel have increased the cost of production per unit of electricity fourfold. “Diesel which was at Rs. 110 per litre is now Rs. 430 per litre and has increased the costs incurred in the generation of electricity fourfold. The Ceylon Electricity Board (CEB) only asked for Rs. 869 billion out of these sales but the Public Utilities Commission  of Sri Lanka (PUCSL) only allowed Rs. 500 billion. With the generation cost per unit at Rs. 40, it is electricity worth almost Rs. 1,500 that is being given at a relief price of Rs. 360,” he explained. Moreover, he mentioned how it was criticised that the bills were increased even for shrines and places of religious worship, out of which 15,195 used 0 - 30 units and paid only Rs. 87 monthly, and that this has now been increased to Rs. 330. The 11,131 places of religious worship that consume 31-90 units and used to pay a maximum of only Rs. 285, now have to pay Rs. 1,260, he added. “We have followed this method to cover the cost of production by increasing the prices for higher consumption without penalising the lower users’ much.” Meanwhile, the main Parliamentary Opposition, the Samagi Jana Balawegaya (SJB), engaged in a silent protest in front of the Parliament premises yesterday (29), protesting against the Government’s decision to raise electricity tariffs. Opposition and SJB Leader Sajith Premadasa, Chief Opposition Whip MP Lakshman Kiriella, SJB National Organiser MP Tissa Attanayake, and other SJB MPs including Mujibur Rahuman, Chaminda Wijesiri, Gayantha Karunatilleka, Hector Appuhami, Dilip Wedaarachchi, and Nalin Bandara participated in the protest. During the protest held last morning, they were seen carrying placards and banners reading “Electricity bill to the sky – Whole country in darkness” and “Stop corruption – Reduce electricity bill”. Speaking to the media during the protest, Premadasa said that the Government has taken steps to raise electricity tariffs by an unusual percentage. He said that the people who are already in the midst of many serious crises are unable to cope with that pressure. He also said that the SJB would fight together with the people against this arbitrary decision by the Government. “At a time when the cost of living is increasing daily, the Government has increased electricity tariffs. I would like to ask whether the Government invites us to join an all-party Government and accept Cabinet Ministerial posts to share with us the US dollars received from the coal tender. I would like to make it very clear that we, the SJB, will not be involved in any all-party Ministerial gambling with this disgraceful Government, which has squandered billions from the coal tender. They make money from the people’s discomfort, don’t they?” he queried. Inside the Parliament yesterday, SJB Opposition Parliamentarian Kabir Hashim stated that the groups most affected by the electricity bill increments include the most poverty stricken groups, the groups with the least social benefits, people dependent upon the salary and small and medium scale enterprises, companies and industries. He emphasised that the International Monetary Fund (IMF) also advises to provide special provisions for groups such as these and accordingly requested the Minister of Power and Energy Kanchana Wijesekera to take into consideration the suggestion by the SJB. “We, as the SJB, ask the Minister to provide financial reliefs and provisions for these groups as per the IMF instructions. Our suggestion is that direct financial relief should be given to the following groups,” he said. Elaborating on the groups affected, he noted: “The problem we’ve got is the smallest category being burdened with the highest percentage increase of the price. The ones using only 30 units have only a television (TV) and two bulbs, and those amount to 2,000,000. Moreover, the consumption of 30-60 units means the use of a TV and four bulbs without any other electrical appliances and they too amount to 2,000,000. The other group uses 60- 90 units which include Government servants and individuals employed in the private sector, mostly dependent on the monthly salary. Their bills were raised by 100-125%.” He criticised the political authorities and Ceylon Electricity Board (CEB) officials for not implementing timely reforms for political benefits, noting that the electricity tariff hikes have impacted the economically disadvantaged.  “How did this crisis in the CEB come about and who created this? The poor general public did not create this. Some politicians and political parties are responsible for this. They made various deals with workers’ unions and higher administrative officers for political advantages in order to come into power without bringing in necessary timely reforms. Also, there are other respondents, ones bearing higher offices in trade unions who should be held responsible for this,” claimed Hashim. The Public Utilities Commission of Sri Lanka (PUCSL) on 9 August approved an average 75% price hike for electricity tariffs for all electricity consumers in the country, which PUCSL Chairman Janaka Ratnayake said was the first electricity tariff hike in nine years. He said that the electricity tariff hike was made after two proposals forwarded by the Ceylon Electricity Board (CEB) this year to hike prices. Accordingly, consumers who use 30 or less units will face a 264% increase, bringing their average monthly bill to Rs. 198. Consumers who use 30 to 60 units will face a 211% increase, which will result in an average monthly bill of Rs. 599. Furthermore, consumers using 61 to 90 units will face a 125% hike, leading to an average monthly bill of Rs. 1,461.


More News..