Public Utilities Commission of Sri Lanka and the Electricity
Industry
Dr. Jayatissa De Costa - Chairman, Public Utilities
Commission of Sri Lanka
The Public Utilities Commission of Sri Lanka (PUCSL) was established
by an Act of Parliament (Act No.35 of 2002) to ensure consumer
protection, improved quality of services, efficient supply, greater
availability, adequate investment in the industries it regulates.
There are five members in the Commission, appointed for five year
terms by the Minister in charge of Policy Development with the
concurrence of the Constitutional Council. The Commission members are
defined by subject expertise and experience - At least one member each
from the fields of Engineering, Law, and Business Management. At the
moment the Commission consist of: two senior lawyers (including the
Chairman), a professor in engineering, a business consultant and an
industrialist, who is also an engineer (Deputy Chairman). The
Commissioners are on part-time basis and are assisted by the staff.
Although small in number, the staff of the Commission comprise engineers
(Director General himself is a Professor in electrical engineering),
lawyers, economists, accountants and experts in restructuring and
regulation of utilities. In addition, the Commission hires expert
consultants for special tasks.
Lubricants Market
PUCSL was appointed as the shadow regulator for the lubricants market
through a Cabinet decision in 2006. Since then, in addition to providing
advice to the Ministry of Petroleum and Petroleum Resources on down
stream petroleum industry, PUCSL has been contributing heavily, in
ensuring lubricant standards, facilitating new entrants to the market
and in monitoring other petroleum industry activities.
Electricity industry
Regulation of the electricity industry has been the main motive
behind the establishment of PUCSL in 2002. PUCSL has been providing
policy inputs and advising the Ministry of Power and Energy on various
matters; energy policy, incorporate stakeholder consultation in
regulatory decision making, consumer protection and tariff setting.
After several attempts to bring in fresh industry legislation to
empower PUCSL, the present Government with the leadership of President
Mahinda Rajapaksa, managed to enact the Sri Lanka Electricity Act, No.
20 of 2009 on April 8, 2009, after extensive consultations with the
industry stakeholders and the general public. This Act aims to empower
PUCSL as the economic, technical and safety regulator of the electricity
industry in Sri Lanka.
Sri Lanka has about 4.5 million electricity consumers, of which about
90% is served by the state owned Ceylon Electricity Board. There are
more than 90 private owned power plants and 80% of the households are
provided grid electricity through the national grid. The previous
electricity law (Act No. 19 of 1950) lacks mechanisms to handle the
present complexities of the industry.
This Act aims to bring regulatory reforms to the electricity industry
and attempts update the Law to suit the present industry context;
especially on consumer protection, safety, tariffs and efficiency of the
utilities. Since April 2009, PUCSL has been very active in bringing in
subsidiary regulations and other mechanisms required for regulating the
electricity industry.
Consumer complaints
As part of its consumer protection function, PUCSL has started a
special unit to handle consumer grievances. Since, April 8, 2009, PUCSL
has received 446 complaints to date, and has already resolved 311. This
unit is assisted by the electrical inspectors, who are appointed to
enforce technical standards and codes. Three (3) inspectors are already
appointed, and are mobilized throughout the country.
Awareness campaign
PUCSL has started an awareness building campaign among the business
community and the general public.
Already workshops were held for district Chambers of Commerce in
Kandy, Polonnaruwa and Kurunegala by PUCSL officials, on the activities
of PUCSL and the implications of the new Sri Lanka Electricity Act, No.
20 of 2009. Also an island-wide poster program has been started to
educate public on PUCSL activities. Also a district level awareness
program to educate the Divisional Secretaries on resolving 'wayleave'
related issues when constructing new electric lines has been conducted.
Already about 20 district meetings are completed.
Safety program
PUCSL as the safety regulator for the electricity industry has
started a program to check electrical installation in government
schools.
This program was inaugurated on July 21, 2009 at Dhammapala Balika
Vidyalaya in Puwakdandawa, Tangalle in Hambantota district. The school
was provided with the necessary electrical safety devices with the
assistance of Richardson Projects (Pvt.) Ltd. This program has been
conducted island-wide by the electrical inspectors, and already about 30
schools have been inspected.
Licensing and economic regulation
In terms of the Sri Lanka Electricity Act, No. 20 of 2009, PUCSL has
to issue Licences to electricity utilities, including the Ceylon
Electricity Board. Licences are intended to introduce the necessary
regulatory mechanisms in the utilities to ensure quality and efficiency
in their operations. Ceylon Electricity Board being a large utility, is
issued six separate Licences for Generation, Transmission and
Distribution (4 Licences) of electricity. This ensures financial
ring-fencing of CEB to enable PUCSL to compare performance of each
distribution region and to benchmark its activities with other similar
utilities.
Already PUCSL has started obtaining operational information from the
utilities for performance monitoring activities. As provided by the
statute, PUCSL will conduct public consultation through the Consumer
Consultative Committees and public hearings when taking major decisions,
especially related to electricity tariffs.
Throughout this period, PUCSL has been able to have cordial
relationships with the utilities, including Ceylon Electricity Board and
Lanka Electricity Company. The Government and the Ministries, being the
policy makers, have been providing necessary support for our activities.
Overall, the monumental efforts by the Government, lead by President
Mahinda Rajapaksa, to bring in this new legislation, to ensure
development of this vital electricity sector for Sri Lanka, is highly
commendable.
The President's
Words...
I request you to look back for a moment at the
journey we have traversed to this day, from the time when the
honour and dignity of Sri Lanka had declined to the extreme
depths, and the western world pointed to Sri Lankan society as
the epitome of disgrace. In the period between the 58th
anniversary of independence and today as we celebrate its 59th
anniversary, we have sacrificed much for peace, which is the
foremost national need.
- at the 59th Independence Commemoration on
Feb. 4, 2007 at Galle Face |
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