Electricity
consumers get the shock treatment
By Shelani Perera
As a fall out of the huge loss and financial crisis faced by the
Ceylon Electricity Board, consumers are at the receiving end once
again with a 100 percent increase on the fixed charge.
Many
consumers were shocked and taken unawares when they received their
March electricity bill to find a substantial increase on the total
due. With the CEB quite tactfully and without much ado imposing
the extra charge, many were perplexed how their electricity bill
could have shot up by so much and so suddenly when there was no
unusual increase in power consumption during the month.
The
CEB was successful in giving the impression that the increase was
nominal as it was on the “fixed charge” and not based
on the units of electricity consumed.
Though
at first glance that is the impression one gets, however when the
bill is added up the total takes away quite a chunk from the consumer’s
purse.
Irrespective of whether the consumers like it or not the CEB did
away with the fixed charge of Rs. 30 and introduced the new charges
of Rs. 60, 90, 120, 180 and 240 basing it on the number of units
consumed.
This
no doubt compels the already overburdened consumer to pay such large
electricity bills pushing the cost of living further skywards. CEB
justifies this ‘bolt from the blue’ increase saying
it has to pay Rs. three per unit resulting in a daily loss of 40
million rupees.
This
of course ignores the fact that a number of power projects were
not implemented even though experts foreseeing the power crisis
Sri Lanka will face in the future pleaded with the authorities to
introduce alternative power sources.
But
the absence of a political will of our leaders to speedily implement
these power projects due to pressure from various quarters finds
the CEB helpless to extricate itself from the spider’s web
it has fallen into.
Ironically
it appears that the new charge is definitely aimed at the middle
class where if a meter reads even just one unit above the cutoff
point the consumer will have to pay the fixed charge of the next
slab.
The
government in its “Mahinda Chinthanaya” election manifesto
promised a concession of Rs. 20 to be granted to those who use the
minimum number of units of water and a concession of Rs. 30 for
consumer’s who use the minimum number of units of electricity.
But unfortunately the boast has not materialized.
However,
instead of the eagerly awaited concession from March 30, the CEB,
a month earlier from February 1, took away the fixed charge of rupees
30 and introduced fresh charges in five slabs.
The
decision to increase the fixed charge was first made in 2005 but
postponed to take effect from February 1 this year. An unmoved Power
and Energy Minister John Seneviratne told The Sunday Times the CEB
was losing a massive sum of money as it was purchasing a unit of
electricity at rupees three and as such the increase was inevitable.
The
Minister said the CEB in a move to recover the loss was even looking
at increasing the unit charge. “In the circumstances the National
Utilities Commission recommended an increase. The increase on the
fixed charge was imposed after an assessment made by the CEB, as
we are selling power at a loss,” the Minister said. The Minister
said the main reason for the CEB to face
such
a huge loss was due to the delay in implementing new power projects
at the right time. “That is why the CEB has earmarked several
projects including the much controversial coal power plant in Norochcholai.
Once these projects are completed, I am confident that we can sell
a unit of electricity between rupees six and eight,” the Minister
added.
Further
justifying the increase on the fixed charge, Minister Seneviratne
said the CEB has not increased its tariff since 2002 despite the
Board running at a loss and being in debt.
“For
nearly four years the CEB was carrying the burden despite the many
changes in the price index,” the Minister said and dismissed
allegations that the CEB did not give sufficient notice about the
increase.
“There
was enough publicity, the CEB has no intention of increasing its
tariff without informing the consumer of the tariff change. We have
been talking of an increase. It was only a matter of time before
it happened. There is no need to be confused about this change.
We did this to cover the loss faced by the CEB”, the Minister
said.
Meanwhile
the powerful Ceylon Electricity Board Worker’s Union has to
some extent accepted the increase as a means of recovering the loss
and resuscitating the CEB by whatever means.
Union
secretary Ranjan Jayalal blamed the CEB hierarchy for the non implementation
of the power projects which has resulted in the present financial
crisis.
‘If
the projects were implemented at the correct time the consumer need
not be burdened by such huge increases. Even the workers won’t
have to fight to get their allowances and other benefits”,
he said.
The
Union strongly condemned the move by the CEB to introduce the fixed
charge increase without sufficient notice to the consumers. “Some
knew of the increase only when they saw the bill. We condemn this
way of doing things and feel the consumers have a right to know
what they are paying for. The consumers are held to ransom for the
mistakes of the officials. This has been the case for so many years”
Ranjan Jayalal lashed out.
As
usual the consumers have to dance according to the tune of the powers
that be who come out with various excuses or high sounding schemes
to cover up their mistakes.
Meanwhile
there is no guarantee that the February 1 increase on the fixed
charge will be the last such increase at least for this year specially
after minister John Seneviratne sent out warning signals of yet
another increase in the electricity tariff.
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