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THE PRESIDENCY - 4th Anniversary of the assumption of office President Mahinda Rajapaksa | www.dailynews.lk - Sri Lanka

Public Utilities Commission of Sri Lanka and the Electricity Industry

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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