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Reduced charges benefit only big users, say consumer rights groups
The Government’s decision to reduce electricity charges by 25 per cent is set to benefit only high end users, consumer rights groups charged yesterday.
President Mahinda Rajapaksa announced recently that the electricity bill of consumers will be reduced by 25 per cent.
On September 26 the Treasury made a proposal that the benefit of the 25 per cent reduction will be given only to those using up to 300 units. Accordingly Ceylon Electricity Board (CEB) Chairman W.B Ganegala was last week quoted in the Sunday Times as saying the benefit will only apply to those consuming up to 300 units.
But, soon after, several persons including Cabinet ministers raised the issue with President Rajapaksa saying that the original promise was to reduce all electricity bills by 25 per cent. Ministers Wimal Weerawansa and Keheliya Rambukwella were among those who raised the issue.
“There are no scientific reasons behind the reduction of the electricity charges. Since the implementation of the surcharge we have been saying that it is very unfair to the consumers,” said National Electricity Consumers’ Movement (NECM) Advisor Bandula Chandrasekara adding that though he is happy to see any sort of reduction in the electricity charges only a small group will be benefitted by it.
Mr. Chandrasekara explained that low end users, who use less than 180 units, will not have a considerable reduction in their electricity bills but the benefit will solely be enjoyed by high end users. A person who receives only a monthly salary will still be burdened by the increase effected last year.
Furthermore the reduction has ignored those who worked to conserve energy, he said.
Following the implementation of the fuel surcharge electricity, consumers initiated the usage of Solar Net Metering Systems, in a move to conserve electricity. However the recent reduction will not provide relief to them. But, the NECM Advisor said that if all units of the Norochcholai coal power plant are working well the Government can lift the fuel adjustment surcharge altogether.
He said that 55 per cent of electricity utilised by the public can be generated by the coal power plants; 20 per cent, in a worst case scenario, can be generated by the existing hydro power generating systems and ten per cent can be provided from renewable energy. Mr. Chandrasekara said that then there will be no necessity for power generated by the use of oil.
We can clearly see that the Government has not properly studied the electricity charges before announcing a reduction. It should have taken into consideration the differing living standards of people and the impact this reduction has on them. As a result of the proposed reduction the CEB will suffer a loss of Rs. 60 billion annually without the right users getting the benefit, he added.
The reduction in the charges would be effective from September 16, the day President Rajapaksa made the announcement after he and visiting Chinese President Xi Jinping launched the third phase of the Norochcholai power plant.