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By Sandun Jayawardana  

The Sri Lanka Electricity Bill, which paves the way for wide-ranging reforms in the country’s power generation sector, was passed in Parliament on Thursday by a majority of 44 votes. The bill received 103 votes in favour and 59 against in the vote on the Second Reading.

The bill was passed with amendments after a day-long debate. Earlier, the Supreme Court had determined that certain clauses in the bill were inconsistent with the Constitution and that the bill would require a 2/3rd special Parliamentary majority if it were to pass in its current form. While the government incorporated the amendments suggested by the Supreme Court in the Committee Stage to ensure that the bill can be passed with a simple majority, it was not agreeable to multiple amendments suggested by the opposition.

Power and Energy Minister Kanchana Wijesekara

Opposition MPs had protested that the bill was being presented in an undue hurry and was paving the way for the privatisation of the Ceylon Electricity Board (CEB) and the entire electricity sector. Opening the debate on the draft bill, Power and Energy Minister Kanchana Wijesekara noted customers were complaining about the unsatisfactory supply of electricity, inefficiency in the sector and the high prices of their electricity bills. He said the present Act had not been amended to suit the modern age.

“Ministers and MPs are being blamed for the issues in the power sector but it is not the ministers who provide technical advice. None of us here has obstructed reforms at the CEB. That is being done by those who have created a monopoly within it. There is no other institution in this country that has been gripped by a monopoly as much as the CEB,” claimed Minister Wijesekara.

It wasn’t ministers or governments who obstructed reforms at the CEB, but a section within the Board and a political group that supported this section from outside, added the minister. There is a trade union group within the CEB which has the backing of this political group, he added.

He pushed back at accusations that the bill was being introduced hurriedly, stating that the first Cabinet paper on the proposed bill was presented in July 2022. This was followed by the appointment of a committee to study the proposal, which held discussions for three months. Moreover, former power and energy ministers, whether they were in the current Parliament or not, were invited to present their views on the proposed reforms, as were political parties. Very few took up the offer, he said.

“This is no one’s bill but our own, designed to cater to the needs of Sri Lankans. The opposition has been forced to oppose the bill because it is being introduced by this government. Even some opposition MPs have privately told us that this bill must pass,” he added.

Meanwhile, the economic blueprints presented by the Samagi Jana Balawegaya’s (SJB) and the National People’s Power (NPP), which have sections on power sector reforms, essentially says the same thing that the government’s bill contains, the minister told the opposition. He further announced that electricity tariffs will be significantly reduced from July 1.

The Supreme Court has already said that there are many clauses in the government’s bill that violate the Constitution, said SJB MP Kabir Hashim. “There was even a clause that required a referendum. That alone shows that this bill was not properly thought out and drafted and was presented hurriedly.”  

Making electricity an accessible and affordable commodity has to be one of the targets, said Mr Hashim. The government though, significantly increased electricity prices several times from August 2022. This resulted in more than 500, 000 families from poorer income groups having their power supply disconnected. The government did not take any steps to address the issue, but is now talking about reducing electricity tariffs, he observed.

“Can we develop our renewable sector so it will yield dollar income and not one which will be exploited by foreign companies? Has this Act got those safeguards?” asked the MP. He added that unbundling and using new technology is good “but will the system yield benefits to our country or will it benefit some fly-by-night investors as it has been happening in the past? It’s happening right now.”

The government’s bill is deeply flawed, opined Opposition Leader Sajith Premadasa. He said the government’s proposal of unbundling the CEB is too complicated and should be more simple and practical. He pointed out that the bill proposes to create 12 new companies, with four companies for generation, two for transmision, five for distribution and one for the Provident Fund. “This mechanism should be more simple and practical. The timeline given for implementation is also irrational,” he further said.

Mr. Premadasa also claimed that the bill will also heavily politicise the power sector by giving enormous powers to the minister, thus depriving valuable checks and balances. “The power to appoint director boards to the Power Sector Reforms Secretariat and the National Electricity Advisory Council and the successor companies, all lie with the minister. The minister also has the power to micromanage both the regulator and the national system operator. We cannot support this bill in such a situation,” he explained.

Minister Wijesekara however, said in response that under the Constitution, the power to appoint the directors of a statutory board is vested with the subject minister.

Minister of Trade, Commerce and Food Security Nalin Fernando said people ask every day as to when the electricity prices will be reduced as they are struggling to meet other vital expenses such as those for food and their children’s education. If the present Act has the necessary consumer safeguards as the opposition claims, how did it allow for a situation where consumers got saddled with such large electricity bills, he asked. “What the consumer ultimately needs is cheaper electricity. We now have the most expensive electricity bills in Asia,” said the minister.

The CEB has been a service provider to the country. It has not been a profit making entity. But right now, the CEB is the only player that’s providing electricity supplies, whether people like it or not, Tamil National Alliance (TNA) MP Shanakiyan Rasamanickam said.

Mr. Rasamanickam claimed that the bill will provide “unnecessary powers that we can’t even imagine, to the minister.” While stating that Kanchana Wijesekara is an educated politician and a good minister, the MP queried what will the fate of the electricity consumers be if an utterly corrupt politician becomes the power and energy minister in future and is armed with all these powers.

National People’s Power (NPP) MP Vijitha Herath claimed the bill will clearly break up the CEB into 12 companies and handed over to the private sector.

“The bill will not even create the competition that the government claims will result in lower prices. What it will create is a private sector monopoly on power. This is already happening when it comes to contracts for renewable energy, be it solar or wind power. This bill is only providing a legal basis for that. It is quite clear that this bill has been presented to give it to India’s Adani Group,” accused the NPP Parliamentarian.

The opposition is certainly trying to sell the allegation that the bill paves the way for the sale of the CEB, said State Minister of Power and Energy Indika Anuruddha. The MPs must “act according to their conscience” he said and reminded that there was a time when students studying for the A/Level exam suffered due to lack of electricity. “There were power cuts lasting 10-12 hours. The crisis even contributed to the collapse of the government. It is essential that we bring in reforms to modernise this sector. If there are shortcomings, we can bring in necessary amendments in the future,” the MP said, urging all MPs to support the bill.