Sri Lanka’s Electricity Users’ Association warns that restructuring the Ceylon Electricity Board could force a 50% tariff hike, as billions in worker compensation may be unfairly passed on to consumers despite the utility posting profits.
The National Secretary of the Electricity Users’ Association, Sanjeewa Dhammika, has warned that electricity tariffs may rise by at least 50% as a result of the government’s restructuring of the Ceylon Electricity Board (CEB).
He alleged that the Electricity Amendment Act has been altered in a distorted manner to benefit contractors, and now a system is in place for employees unwilling to join the four newly divided CEB companies to resign with compensation.
Dhammika explained that each resigning employee will be compensated up to Rs. 500,000. With an estimated 5,000 employees expected to leave, the payout could reach Rs. 25 billion. He warned that this burden may be transferred to electricity consumers through higher tariffs.
“In order to cover this cost, there is a plan to increase electricity tariffs, which will place an unfair burden on the public. We demand an assurance from the Malima government that consumers will not be forced to pay for compensation packages,” Dhammika said in his statement.
He further noted that despite these claims, the CEB recorded a profit of over Rs. 5 billion in the last quarter. He urged the Public Utilities Commission not to allow restructuring-related costs to be imposed on consumers.
The Secretary also pointed out irregularities in the restructuring plan. “According to the Act, the CEB should have been divided into six parts. Instead, the government has split it into only four, creating a distorted version of the restructuring. The government must explain this,” he added.
The association has demanded transparency and accountability, stressing that workers’ compensation should not be used as a pretext to push already burdened households into paying more for electricity.
