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Despite mounting protests, Cabinet to consider increase in electricity rates
View(s):By Sandun Jayawardana
Despite continuing protests, the Cabinet is set to again consider a proposal to significantly raise electricity tariffs.
Last week, the Cabinet deferred the proposal submitted by Power and Energy Minister Kanchana Wijesekera to raise electricity tariffs till the next meeting due to be held tomorrow, as some ministers wanted more time to submit their observations.
In the meantime, momentum continued to build against raising tariffs again just four months after a significant increase in August last year. Opposition parties, trade unions including those of the Ceylon Electricity Board (CEB) and civil society activists have come out strongly against the proposed tariff hike. Meanwhile, power sector regulator, the Public Utilities Commission of Sri Lanka (PUCSL) has insisted it will not allow any such a hike.
Addressing a media conference on Thursday, PUCSL Chairman Janaka Ratnayake claimed the proposed hike had not been approved by the CEB’s Board of Directors.
He alleged it had been prepared from a presentation made by the Board’s newly appointed General Manager, another engineer and the Power and Energy Ministry’s Secretary.
“This is an illegal proposal with many flawed calculations. We do not believe the Cabinet will approve it,” Mr Ratnayake told journalists.
CEB Engineers’ Union President Nihal Weeraratne said such a hike was unnecessary and accused Minister Wijesekera for being inflexible and unwilling to listen to advice or consider proposals from professionals.
“I do not believe we can proceed on this matter with the current minister,” he said.
The CEBEU President also warned of the possibility of powers cuts being extended owing to difficulties in procuring coal and the upcoming dry season from January to April. This would impact hydro-power generation.
Around 38 coal shipments of 60, 000 Metric Tonnes (MT) need to be unloaded between September and April to ensure that the 900 Mega Watt (MW) Norochcholai Lakvijaya coal power plant could operate without hindrance. Only five such shipments had arrived up until this month.
Given that the next few months were usually dry, there was a real possibility of the current power cut having to be extended from its present 2 hours and 20 minutes a day, he warned.
Both the PUCSL and the Power and Energy Ministry however dismissed concerns of power cuts being extended, insisting that the coal supply situation had improved.
A shipment carrying 60,000 MT of coal arrived in the country on Friday while another shipment was due yesterday. Altogether, six coal shipments were due in the country this month, the PUCSL Chairman said. With about 12 more shipments due from February, about 25 ships would have arrived by March.
“If we can get about seven or eight more shipments, we will have coal to last us till August,” Mr Ratnayake told the media.
Meanwhile, the overall capacity of major reservoirs was at 75% this week while the overall capacity of hydro-power reservoirs stood at 65%, Mahaweli Authority Deputy Director and the Water Management Secretariat’s Director Nilantha Dhanapala said.
Mr Dhanapala is part of the Water Management Panel (WMP) consisting of stakeholders such as the Mahaweli Authority,
Irrigation Department, National Water Supply and Drainage Board, CEB and the Wildlife Conservation Department. The panel meets each week to decide on the management of water resources under the Mahaweli project.
“We analyse weather forecasts and rainfall predictions and take it week by week,” Mr Dhanapala said. He added that currently, there was little rainfall in the reservoir areas, as was usually the case from January to April. Priority when it came to releasing water went first to drinking water and then to irrigation, with power generation coming third.
Attempts to contact Minister Wijesekera proved futile.
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