President Ranil Wickremesinghe today slammed the Chairman of the Public Utilities Commission of Sri Lanka (PUCSL), stating that the powers to revise electricity tariffs are vested with the Ministry of Power and Energy and the Cabinet of Ministers.
Pointing out that there was a conflict of interest with regard to the PUCSL, he said, “the PUCSL Chairman owns the leading real estate group Trillium Ltd. There are a number of companies under this group namely Trillium Havelock Residencies, and Trillium Negombo Villas. I would have gone against the tariff hike if I owned real estate companies. I have received many complaints against the PUCSL. It is Parliament that has the authority to take action against him. Therefore I request the House to debate it and come to a decision.”
Speaking in Parliament today (08), the President also requested Parliament to decide whether an inquiry should be conducted against the PUCSL Chairman.
President Ranil Wickremesinghe further informed the Parliament that the Ceylon Electricity Board (CEB) has incurred a loss of Rs. 300 billion from 2013 to date.
President Wickremesinghe said that even though electricity tariffs were increased in August this year, the CEB is expected to incur a loss of Rs. 151 billion.
“If there is a drought next year, then the CEB will require another Rs. 420 billion to manage the situation. If there is rainfall then we require Rs. 352 billion and if there is ample water in the reservoirs then this further reduces to a requirement of Rs. 295 billion,” the President explained.
Questioning how this money could be obtained, President Ranil Wickremesinghe said the government has no income and questioned if more money should be printed to mitigate the crisis, adding that the latter will result in the depreciation of the Rupee.
“Is the next option to increase VAT? We have repeatedly done so and it has ended in issues now. So what is the next option? To increase electricity tariffs or to impose power cuts? he questioned.
Stating that he had opposed the proposal to impose power cuts, the President said this was due to requests to prevent power cuts during the GCE Ordinary Level Examinations that are scheduled from January to February next year.
President Ranil Wickremesinghe also pointed out that international entities and foreign nations will not offer financial assistance if Sri Lanka continues to show losses and fails to show any form of income.
“The failure to take action since 2013 has resulted in the current situation of the CEB and the country. We have to take unpopular decisions for the betterment of the nation. Therefore, it has been decided to go ahead with the revision of electricity tariffs even though we do not like the idea,” he added. (NewsWire)
Parliament speech of President Ranil Wickremesinghe
I was the one who initiated to draft the Public Utilities Commission of Sri Lanka (PUCSL) Act. There the powers are vested on Minister and the Cabinet. There is a letter from the Attorney General which says it is evident from the afore mentioned provisions in the Sri Lanka Electricity Act general policy guidelines of pricing could be issued by the Minister and that such policy may be framed in the form of a tariff structure formula or by any other method. In terms of section 30 sub section 2 and 3 of that the aforesaid the PUCSL could be statutory obliged to give effect to such policy. It is observed that neither the Sri Lanka Electricity Act nor the PUCSL Act No 35/2002 contain any provision to empowers the PUSL to vary or act in variants of such policy guidelines.
I know it well, as I was the one who drafted the PUCSL Act and it comes within the ambit of my ministry. I don’t know as to why this Chairman misleads the people. I’ve got to meet this Chairman as I have received several complaints against him and his statements. He says that he does not allow increasing the electricity tariffs. He has not been vested with any power in that connection. How could the country run the economy, if we can’t increase the electricity tariff?
The said chairman is the Chairman of the Trilliam Group too. He is the one who buys highest amount of electricity.
Building diversified portfolio on luxury real estate. Trillium: As a developer we aim to create the most luxuriant living spaces, offices and hotels at sought after locations where our design and architecture are obtained through exceptional levels of expertise. How much electricity is consumed by luxurious apartments?
He has Trillium Residencies, Trillium Havelock Residencies, Trillium Residencies Colombo 07, Trillium Hotels Colombo 07, Trillium Residencies Negombo, Trillium Villas. So when the electricity prices increases his expenditure increases. As the Chairman of the PUCSL he has conflict of interest with that decision, so he had to disassociate himself from that meeting. He didn’t do that. They want me to have an inquiry. But under the law, the power of inquiry lies with the Parliament. So I will leave for the members of the Parliament to decide what has to be done. I don’t think this type of things can go on. You are chairman of a public corporation; you must know how you should behave. You are not a monkey who dances into organ. If I had something such, even I would not be pleased with the electricity tariffs going up.