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Electricity consumers get the shock treatment
By Shelani Perera
As a fall out of the huge loss and financial crisis faced by the Ceylon Electricity Board, consumers are at the receiving end once again with a 100 percent increase on the fixed charge.

Many consumers were shocked and taken unawares when they received their March electricity bill to find a substantial increase on the total due. With the CEB quite tactfully and without much ado imposing the extra charge, many were perplexed how their electricity bill could have shot up by so much and so suddenly when there was no unusual increase in power consumption during the month.

The CEB was successful in giving the impression that the increase was nominal as it was on the “fixed charge” and not based on the units of electricity consumed.

Though at first glance that is the impression one gets, however when the bill is added up the total takes away quite a chunk from the consumer’s purse.
Irrespective of whether the consumers like it or not the CEB did away with the fixed charge of Rs. 30 and introduced the new charges of Rs. 60, 90, 120, 180 and 240 basing it on the number of units consumed.

This no doubt compels the already overburdened consumer to pay such large electricity bills pushing the cost of living further skywards. CEB justifies this ‘bolt from the blue’ increase saying it has to pay Rs. three per unit resulting in a daily loss of 40 million rupees.

This of course ignores the fact that a number of power projects were not implemented even though experts foreseeing the power crisis Sri Lanka will face in the future pleaded with the authorities to introduce alternative power sources.

But the absence of a political will of our leaders to speedily implement these power projects due to pressure from various quarters finds the CEB helpless to extricate itself from the spider’s web it has fallen into.

Ironically it appears that the new charge is definitely aimed at the middle class where if a meter reads even just one unit above the cutoff point the consumer will have to pay the fixed charge of the next slab.

The government in its “Mahinda Chinthanaya” election manifesto promised a concession of Rs. 20 to be granted to those who use the minimum number of units of water and a concession of Rs. 30 for consumer’s who use the minimum number of units of electricity. But unfortunately the boast has not materialized.

However, instead of the eagerly awaited concession from March 30, the CEB, a month earlier from February 1, took away the fixed charge of rupees 30 and introduced fresh charges in five slabs.

The decision to increase the fixed charge was first made in 2005 but postponed to take effect from February 1 this year. An unmoved Power and Energy Minister John Seneviratne told The Sunday Times the CEB was losing a massive sum of money as it was purchasing a unit of electricity at rupees three and as such the increase was inevitable.

The Minister said the CEB in a move to recover the loss was even looking at increasing the unit charge. “In the circumstances the National Utilities Commission recommended an increase. The increase on the fixed charge was imposed after an assessment made by the CEB, as we are selling power at a loss,” the Minister said. The Minister said the main reason for the CEB to face

such a huge loss was due to the delay in implementing new power projects at the right time. “That is why the CEB has earmarked several projects including the much controversial coal power plant in Norochcholai. Once these projects are completed, I am confident that we can sell a unit of electricity between rupees six and eight,” the Minister added.

Further justifying the increase on the fixed charge, Minister Seneviratne said the CEB has not increased its tariff since 2002 despite the Board running at a loss and being in debt.

“For nearly four years the CEB was carrying the burden despite the many changes in the price index,” the Minister said and dismissed allegations that the CEB did not give sufficient notice about the increase.

“There was enough publicity, the CEB has no intention of increasing its tariff without informing the consumer of the tariff change. We have been talking of an increase. It was only a matter of time before it happened. There is no need to be confused about this change. We did this to cover the loss faced by the CEB”, the Minister said.

Meanwhile the powerful Ceylon Electricity Board Worker’s Union has to some extent accepted the increase as a means of recovering the loss and resuscitating the CEB by whatever means.

Union secretary Ranjan Jayalal blamed the CEB hierarchy for the non implementation of the power projects which has resulted in the present financial crisis.

‘If the projects were implemented at the correct time the consumer need not be burdened by such huge increases. Even the workers won’t have to fight to get their allowances and other benefits”, he said.

The Union strongly condemned the move by the CEB to introduce the fixed charge increase without sufficient notice to the consumers. “Some knew of the increase only when they saw the bill. We condemn this way of doing things and feel the consumers have a right to know what they are paying for. The consumers are held to ransom for the mistakes of the officials. This has been the case for so many years” Ranjan Jayalal lashed out.

As usual the consumers have to dance according to the tune of the powers that be who come out with various excuses or high sounding schemes to cover up their mistakes.

Meanwhile there is no guarantee that the February 1 increase on the fixed charge will be the last such increase at least for this year specially after minister John Seneviratne sent out warning signals of yet another increase in the electricity tariff.

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