ISSN: 1391 - 0531
Sunday, April 15, 2007
Vol. 41 - No 46
Financial Times  

Relief for power users

Our front-page story that the Public Utilities Commission (PUC) would be the regulator of the power sector and be the judge of all issues relating to this sector must be indeed good Avurudu news for consumers and the industry as a whole. No one knows better than the consumer about how ineffective the CEB has been as a service institution. It’s not only the CEB but all state-controlled service groups like water are monoliths that cannot be changed, whichever way you like. They are too politicised, unionized and reluctant to change.

Thus change at the CEB for the benefit of the consumer – as the case should always be – is a good step forward in improving services. Governments present and past have been desperately trying to raise the efficiency levels at institutions like the CEB. However politicization by the very people (politicians) who seek change – placing political appointees and their catchers in influential positions – has been the stumbling; block always! That coupled with unions resisting change to save jobs of an inefficient workforce has been the hallmark of these failed state institutions.

Every consumer has a grouse against the CEB (this is all old hat but it’s worth repeating): When the lights have suddenly gone off, try calling the local substation and they’ll most likely ask you to call another number. Then try getting the CEB to send some workers to repair a line or check out some fault; you would be lucky if they come in a few hours. It all depends on whether a vehicle is available or whether the repairman is around!

A small ‘santhosam’ is not out of order for workers when they come home to check out a fault. That “I need a small incentive to do this job well” is seen in their eyes. That even applies to the garbage collectors who believe –like CEB workers and other state-owned utilities – that the consumer must thank them for coming to their ‘rescue’.

The level of state services has hit such lows that even if a few workers want to do their job properly, others won’t allow them to. The fact is that consumers are paying for a service and must get the best or they should be able to move onto another supplier. In this case, consumers don’t have an option as power, water and telecommunications (until recently) are controlled by the state. It was a take-it-or-leave it attitude. Either you use the services or you don’t.

Inflated bills, delayed connections, delays in repairs, bills not coming on time, disputed rates are some of the issues facing CEB consumers. The PUC, if the system works, would be the relief that consumers have been waiting for. The telecommunications industry which moved from a state controlled one to a liberalized sector has shown some fantastic gains. Consumers are reaping the benefits of a sector where the state monopoly supplier Sri Lanka Telecom (earlier Telecommunications Department) is competing with the likes of Dialog, Suntel, Lanka Bell, Hutch, Tigo and others. Suddenly people of all walks of life are contactable.

The fixed line which cost anything between Rs 10,000 to Rs 18,000 about 15-20 years ago and waiting time of 3-4 years or more has changed drastically. Phone connections (including fixed like Lanka Bell, Suntel) are instant and around the same cost! Service is of a high order and SLT, which is privately managed, has also woken up to offer a competitive service.

There’s no doubt that the way forward is for the state to un-bundle monolithic giants like the Water Services Board and play the role of regulator and facilitator. The private sector is undoubtedly more efficient, obviously if private sector firms are to survive. The public sector is inefficient with trade unions, a lackadaisical workforce and politicization to blame.

 
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Copyright 2007 Wijeya Newspapers Ltd.Colombo. Sri Lanka.