News

Court gets stern with CEB over unrealistic tariffs

By Telles Anandappa

The Supreme Court has ordered that a Treasury payment of Rs. 395 million to the Ceylon Electricity Board (CEB) be withheld until the court made a decision in regard to a fundamental rights case filed by religious institutions and a consumer association. The petitioners are challenging the CEB’s proposed new tariff charges.

The directive was given when the case filed by the Nugegoda Nalandaramaya Chief Incumbent, Ven. Thiniyawala Palitha Thera, was taken up for hearing on Friday before Chief Justice Sarath N. Silva and Justices K. Sripavan and P. A. Ratnayake.

The court questioned the Rs.395 million the CEB claimed it had spent to supply power at low rates to religious institutions. The Treasury has approved payment of the Rs. 395 million to the CEB.

The Chief Justice pointed out that religious institutions constituted only 0.49 percent of the CEB’s customers, and that only 0.001 percent of these religious institutions used up more than 600 units of electricity.

At an earlier hearing, Deputy Solicitor General Sanjey Rajaratnam, appearing for the CEB, submitted two CEB tariff proposals. After studying the proposals and related documents, Justice Sripavan maintained that a consumer utilizing 90 units of electricity paid Rs. 585 under the existing scheme, but Rs. 759 under the proposed new scheme.

The Chief Justice said he was very specific at the last hearing when he said that restoring the 2006 billing system would bring a measure of relief to the low-income class of consumer, and that any increase in tariffs should be reasonable.

The court held that the CEB, instead of providing relief to low-income consumers on the orders of the court, was only adding to their burdens. The Chief Justice said he could charge the CEB general manager for contempt of court.

The court also held, after further scrutiny of documents submitted, that under the CEB scheme, the low-income class of consumer was in fact subsidising the upper-income and industrial class of consumer.
The court said that Sri Lanka was probably the only country in the world where low-income people contributed to the electricity bills of the affluent. The Chief Justice said the CEB was seeking court endorsement for an unrealistic tariff.

The court told the CEB representatives present that tariffs should be rationalised and distributed evenly among all consumers, so as not to impose an extra burden on certain sectors.

Dr. Jayantha Wickramaratna P.C. with P Liyanaarachi and Pubudini Wickramaratne and Thiranagama appeared for the petitioners.

Comparing power rates

The Ceylon Electricity Board’s present tariff charges and proposed tariff charges:
1-30 units consumed – current rate Rs. 3.00; new rate Rs. 4.50
51-90 units – current rate Rs. 7.50; new rate Rs. 10.60
91-120 units – current rate Rs. 14.00; new rate Rs. 20.00
121-150 units – current rate Rs. 20.00; new rate Rs. 20.00
151-180 units – current rate Rs. 20.00; new rate Rs. 20.00
180 units and above – Rs 29.00

 
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