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Thursday, 25 April 2013

Electricity tariff revision rattles Sri Lanka government

Sri Lankan government's decision to raise electricity tariffs to cover the losses incurred by the state-owned power monopoly has created a battle between the current and former power and energy ministers while the opposition parliamentarians protesting the rate hike had plunged the parliament into chaos. For a second day in a row parliament sittings were suspended and the Speaker was compelled to adjourn the House as the opposition United National Party (UNP) MPs interrupted the proceedings. Opposition lawmakers holding candles continued to protest for a second day today and the sessions, resumed today after Speaker Chamal Rajapaksa abruptly adjourning the parliament Tuesday, were suspended again for five minutes. The Speaker adjourned the parliament sessions until May 7th due to the protests by the UNP MPs. Meanwhile, battle lines have been drawn between the former and current Power and Energy ministers over who proposed a rate hike. Responding to a statement made by the current Power and Energy Minister Pavithra Wanniarachchi, the former Minister Patali Champika Ranawaka denied that he initiated a proposal for a tariff hike. Minister Ranawaka who is currently the Minister of Technology, Research and Atomic Energy said the statement made by the current Minister in Parliament yesterday suggests that the proposal to increase electricity tariffs, was made by him as the former Minister of Power and Energy. Minister Wanniarachchi was quoted in media as saying that she only completed the task which had already been started supposedly implying that Minister Ranawaka has proposed the tariff hike. Minister Ranawaka denying the accusation said that he had not submitted any proposal to either the cabinet, the Ceylon Electricity Board (CEB) or the President recommending a revision of electricity tariffs. He said he objected to a rate formula proposed by the Secretary to the Finance Ministry and also made his objection clear to the President. Minister Ranawaka said the rate hike was too much for the low end users and questioned why the government increased the rates now when all the hydropower reservoirs are full and not in 2011 when there was a severe drought. National Freedom Front (NFF) leader and Minister Wimal Weerawansa also has said that increasing the electricity tariff to cover the losses suffered by the CEB is an easy answer from the government's side but it is difficult for the masses. Sri Lankan President Mahinda Rajapaksa however has assured that the increase in electricity rates is a temporary measure taken to recover the losses incurred by the CEB. As the second and third phases of Norochcholai coal power plant, scheduled to be completed by December this year, add thermal power to the national grid, it will be possible for the government to systematically remove the fuel adjustment charges added to the rate increase, the President said.

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