‘Bring in Petroleum, Water Acts to address power sector crisis’

SJB asks Prez whether he is only interested in fully implementing 13 A

By Shamindra Ferdinando

Convenor of the Samagi Joint Trade Union Alliance, Ananda Palitha, yesterday (07) alleged that the failure on the part of successive governments to properly implement the Public Utilities Commission (PUC) Act No 35 of 2002 prevented the PUC from performing its regulatory responsibilities.

Palitha said that as long as this Act, introduced during Ranil Wickremesinghe’s tenure as the Prime Minister of the UNP-led UNF government, way back in 2002, remained not fully implemented, electricity consumers wouldn’t get a fair deal.

The primary reason for the ongoing controversy, over the proposed electricity hike, approved by the Cabinet-of-Ministers, was the non-implementation of the relevant Act, the former UNP activist said.

Former Ceylon Petroleum Corporation (CPC) employee, Ananda Palitha, switched his allegiance to the SJB, in the wake of the UNP split in the run-up to the last parliamentary election, in August 2020.

The trade union leader said that President Ranil Wickremesinghe should take immediate measures to implement the relevant Act. Referring to President Wickremesinghe’s recent declaration that he would have no other option but to fully implement the 13th Amendment to the Constitution as it was law of the country, the SJB activist urged the UNP leader to implement the PUC Act, as well.

In terms of this Act, the PUC is the watchdog for Petroleum and Water, in addition to Electricity, Palitha said. Pointing out that though the PUC received authority to regulate the electricity industry, in terms of Sri Lanka Electricity Act No. 20 of 2009, Palitha said that respective Acts, pertaining to Petroleum and Water, were yet to be passed by Parliament.

The Act, passed in 2002, was meant to empower the PUC as the economic, technical and safety regulator of Water, Petroleum and Electricity sectors. Palitha said that in spite of the PUC Chairman Janaka Ratnayake’s declaration of his readiness to regulate the Petroleum and Water sectors, Parliament was dragging its feet. The SJB representative said so in response to The Island queries.

Asked whether his trade union alliance intended to pressure the Wickremesinghe-Rajapaksa government over this issue, Palitha said that those at the helm of political authority should realize that full implementation of the (PUC) Act of No 35 of 2002 would benefit the government. Proper regulation of Electricity, Petroleum and Water would enable the PUC to make available services, at an affordable price, Palitha said.

Instead, successive governments had deliberately denied constitutional authority to the PUC for obvious reasons, Palitha said, alleging that those who financially benefited through ‘deals’ kept the overall process under their control.

Referring to the abortive bid made by the Human Rights Commission (HRC) recently to provide electricity, without interruption, during the duration of the Advanced Level examination, and its decision to seek judicial intervention in that regard, Palitha questioned the responsibility of Parliament. Palitha said that the electricity industry was in deepening turmoil as the issues therein couldn’t be addressed unless the PUC received oversight powers over Petroleum and Water sectors, too.

Palitha declined to comment on recent accusations that he, along with the Secretary of the Electricity Consumers’ Association, Sanjeewa Dhammika, threatened two PUC members, Mohan Samaranayake, and its Deputy Chairman Udeni Wickremesinghe, as the matter was before the Fort Magistrate Court. Since then Samaranayake and Wickremesinghe sent in their resignation letters.

Asked whether he expected the PUC to address the issues at hand, the SJB official pointed out that progress couldn’t be made until Parliament enacted the relevant Petroleum and Water acts, on the lines of the Sri Lanka Electricity Act No. 20 of 2009. Palitha said that the recent disclosure of Lanka Coal Company Chairman Shehan Sumanasekera’s urgent request for money for procurement of coal underscored the crisis in the power sector. “All this is part of a continuing drama. Have you ever heard of any previous Coal Company Chairman discussing such a matter with the media,” Palitha asked.

Sumanasekera has warned of possible disruption of operations at the Norochcholai coal-fired power plant complex, unless USD 12.32 mn (Rs. 4.56 billion) could be made available.

Palitha said that the government was trying to justify steep increases in electricity tariffs. The ongoing crisis was brazenly used by interested parties to pursue their agenda meant to facilitate the privatization of the CEB, Palitha said, urging the Opposition to pressure the government to enact the relevant Acts, pertaining to the Petroleum and Water sectors.

The trade unionist said that he was quite surprised that the Opposition, and all those demanding a system change, pushed hard for legislation that would make far reaching change in the lives of the hapless public, as well as save industries from collapse, due to intolerable power tariffs.

Against the backdrop of a near 70 percent power tariff increase last year, if electricity rates go up by another 65% percent, consumers would have to implement their own blackouts to save on electriity bills, the SJB official said.