3 members of PUCSL rejects chairman’s proposal of 36% electricity tariff hike

Three members of the Public Utility Commission have rejected the proposal of PUCSL chairman’s proposal of 36 precent electricity tariff hike to ease the difficulty of consumers in paying exorbitant price for a unit of electricity.

These members have approved the 66 percent tariff hike of the Ceylon Electricity Board (CEB), PUCSL chairman Janaka Ratnayake said.

The CEB’s proposal of putting additional burden of Rs 287 billion on consumers annually has been revised by bringing it down to Rs 142 billion in a reasonable manner he said adding that three members of the the PUCSL Chathurika Wijesinghe, Douglus Nanayakkara and S.G.Senaratne had opposed to Commission’s legal tariff hike proposal out right. ,

Mr Ratnayake noted that these commissioners have violated the provisions of the electricity act by approving unreasonable price increases of CEB which will drag the people into more economic difficulties.

Electricity is still produced at a cost which is borne by the CEB. Since the CEB is the State and the State is still run by the people, taxpayers indirectly have to bear the cost of production. Investments in the CEB are made through taxpayers, several energy experts said.

The management is not properly incentivised to improve their performance because the CEB is heavily reliant on the government, they added.

If the CEB performs poorly, the security or bailing out by the government would always give them an ultimate form of protection, further enhancing weakened institutional gaps within the CEB.