By

Karu Jayasuriya M.P.

Recent increase of electricity rates is unprecedented in Sri Lankan history. 75% or else 3.7 million of the electricity consumers use less than 90 units. This increase is unbearable to the low income groups and what action is taken by the government to mitigate this confusion? As they have been doing in the past, the government is trying to pass the blame on to the UNP. Yesterday it was reported in Dinamina, President has told the media chiefs that “We have to shoulder the burden of the mistakes committed during the UNP rule.

It is my duty to explain the truth as the former Minister of Power and Energy during the UNF government I called this press conference today for this purpose.

When UNP took over in 2001 the country was experiencing 8 hour power cuts. This too contributed to the defeat of the UNF government. We accepted the challenge promising that a new Minister should be appointed if the crisis is not sorted out within 180 days. The key strength of the UNP is its competence in management. Our government was able to complete Mahaweli Development Project in 5 years which was originally schedule to be completed in 30 year. On many occasions the UNP governments were able to sort out crisis situations in this manner.

We adopted a planned programme to find solutions to the Electricity Crisis in 2001. It was not an ad-hoc course of action. Following successful methods adopted globally in the field of electrical power and obtaining the services of intelligent consultants we managed to solve the crisis. We would like to remind that the only Nobel laureate in the country volunteered to serve as a Consultant. He served as a Consultant to the World Bank.

We introduced Electricity Reforms Act No.28 in Parliament in 2002, to regulate generation, transmission, distribution and supply of electricity in Sri Lanka taking in to consideration successful research carried out by developed countries in the world. It was planned through this act to generate transmit distribute and supply electricity by 04 separate institutions consisting of separate Board of Directors and Management and to operate these institutions as profit making entities.

Asian Development Bank and JBIC agreed to support fully to implement this programme. Lack of sufficient funds was the biggest problem of the Electricity Board. 120 million US Dollars (Rs.15,000 million) was pledged as aid for the project.

Majority of the Electricity Board approved the project and we were dedicated to it. Few individuals interpreted this project as an attempt to privatize or sell the Electricity Board.

We never intended to privatize the Electricity Board by this act. We wanted to convert the Electricity Board to an efficient establishment. When we were taking steps to implement this programme with the consent of a larger majority of the employees. Suddenly the government of the UNF was dissolved. Otherwise we could have introduced a system to supply electricity in an efficient manner and at a reasonable rate.

In order to counter the accusation that an attempt is being taken to sell the Electricity Board through the act, a protection was given through a provision made that if any future government decides to sell the institution it could be done only with the approval of the Parliament.

What the government does now when the ill effects of their wrong decisions are visible, is they pass the blame onto the UNP. We remember that we were accused saying that we were attempting to sell Sigiriya. Once again they are trying to adopt these cheap political tactics.

Thanks to the Hydro Power Projects implemented by the UNP government we get 30 – 40% hydro power. If not for these project there would have been a worse crisis situation. When we took over the government, Kukuleganga Project had been suspend due to lack of some machinery.

Acting diplomatically with the Austrian government we managed to get the machinery from the relevant company and handed over the Kukulgeganga Project to the people.

Upper Kotmale Project too was suspended due to lack of funds. The government has been advised that the Project cannot be implemented successfully by borrowing funds commercially as being done at present. After we came to power, within 90 days we were able to get funds from Japan on concessional terms and for a longer time period for repayment, though a partner of our government objected to the project, at the time of the dissolution of the government the project work was in progress.

Government must take the full responsibility for the Norochcholai Project. Although the Bishop of Chilaw was not in favour of this project, within the month of January 2002, we were able to get the consent of the Catholic Church including the Archbishop.

Expert advice was given to build Norochchalai Power Plant in some other location due to obstructions envisaged to bring coal during certain months of the year. Accordingly we planned to shift the proposed coal power plant to Hambantota. Japan promised credit facilities on concessional terms.

At Temple Trees, the President blamed UNP for the Electricity crisis on two counts.

Firstly he said our government started purchasing electricity from private power plants. This is completely incorrect. In many instances UNF government purchased electricity during their administration. When we took over the administration we had to purchase electricity from the private sector on a few occasions in order to do away with the 08 hour power cut. We acted in a transparent manner on all these occasions. Purchases were done by a Committee headed by the Treasury. A unit was purchased for Rs.18/= from Hela Danavi which is a joint enterprise of the government; for Rs.16/67 from ACE Matara, Rs.19.35 from a private power plant at Embilipitiya. The officials of the Electricity Board themselves say that compared to the prices paid at present above prices are very reasonable.

Second accusation from the Temple Trees is that electricity generation was privatized by us. This is a baseless accusation. We encouraged investors to generate electricity from small waterfalls, wood and wind. Rather than accusing, the government should feel happy about it.

Machines like GT were not purchased by the UNP. We did not purchase Norochchalai plant which broke down on 21 occasions. Failure of the present administration should not be passed on to others. We witnessed the attempt taken by Minister Champika Ranawake to convert the Electricity Board into an efficient organization, after realizing the truth. When we see the right thing we accept it. We say these without malice.

We established the Public Utilities Commission in order to do justice to the people, not to burden them after obtaining their views. Do not attempt to deceive the people saying that concessions will be given to them after generating 900 mega watts in 2014. When we purchased machinery we procured best supplies according to modern technology. It serves no purpose in engaging in a blame game. You cannot deceive people forever. We have intelligent people in this county.

We need a national policy for electricity. There are intelligent and efficient teams in the Electricity Board. Stop the waste. We witness the way electricity is wasted for State functions such as Dayata Kirula, Motor races and other functions of the political leaders. We have no malice.

When spending money it must be kept in mind that these monies belong to the people. Billions of rupees were wasted by Hedging agreements for which no one is accountable. State Institutions can make profits under an efficient administration. In 2003 Petroleum Corporation made a profit of Rs.9 billion approximately as there was no political interference. The Management of Sri Lankan and Mihin Air incurred a loss of Rs.21 billion; loss in the Petroleum Corporation is Rs.89.7 billion, operational loss of the Electricity Board is Rs.62.2 billion; total debt is Rs.840 billion. All these monies wasted in this manner could be utilized for the well being of the people.

When billions are wasted in this manner, only small amounts are allocated for Social Welfare. Some examples are Rs.7.2 billion is spent for Samurdhi benefits; Rs. 1.64 billion for school uniforms and Rs.1.2 billion for school books. These colossal amounts of monies wasted could be utilized to supply medicines to cancer patients, to erect gates at railway crossings and to improve education. When duty concessions are given for goods imported when the ships are lying in the habour. This leads to a suspicion in the minds of the people. Also it creates a bad precedent.

Robin Hood took money from the rich and gave to the poor. Present government collects money from the poor and looks after the rich. This is why the government extends tax concessions for racing cars such as Lambhoginies and allow the import of 1000 cc motor cycles saying that they are for racing.

When we explain the truth there is a possibility of character assassination and mud slinging through ITN. However, the authorities must realize that people cannot be deceived forever

(Summary of Statements made by Hon. Karu Jayasuriya MP at the media conference held in Colombo on 24th April 2013)