Sri Lanka power tariff hike: ministry offers olive branch to protesting monks
ECONOMYNEXT – Sri Lanka’s Ministry of Power & Energy has agreed to install solar panels purchased with funds from a still-unconfirmed 100 million US dollar Indian loan at select places of worship as a solution to an electricity tariff hike that has led to a standoff between the government and the clergy.
At a discussion held on Wednesday September 28 between ministry officials and a group of Buddhist monks along with officials of the Ministry of Religious and Cultural Affair, a decision was reached to promptly include select religious establishments in a proposed rooftop solar panel initiative by the government, with the cost of the panels to be paid by the religious establishments on in installment basis.
Watinapaha Somananda Thero, Director of Education (Piriven) at the State Ministry of Dhamma Schools, Pirivenas and Bhikkhu education told EconomyNext on Thursday that places of worship that represent Sri Lanka’s various faiths will be included in the programme, to be implemented in two months.
“Minister Kanachana Wijesekera also promised a solution to the increased electricity tariff after discussing it with President Ranil Wickremesinghe and the Ceylon Electricity Board (CEB),” the monk said.
Officials from the Ministry of Power & Energy said funds received from the Indian loan will be used to purchase panels from local suppliers.
“The loan will be settled by the Ministry of Power & Energy. However, the plan is to make a separate payment plan for these places based on the monthly installment for the solar panels and the electricity tariff before the hike,” a Power & Energy Ministry official said.
“Nothing has been confirmed yet and the discussions are ongoing and the loan amount has yet to be finalised,” the official added, requesting anonymity.
Sri Lanka Ministry of Energy has already started implementing solar panels in government establishments including schools and hospitals.
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Minister Wijesekara had previously proposed that some 12,000 temples and religious centres that pay higher tariffs than others convert to solar power and manage their monthly power consumption.
Wijesekara told parliament on Tuesday September 20 that, out of 48,682 connections registered at the state-run Ceylon Electricity Board (CEB) under the ‘religious places’ category, over 36,000 have to pay under 3,990 rupees a month even after the tarrif hike.
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In August, the Public Utilities Commission of Sri Lanka (PUCSL), the regulator, green-lit an electricity tariff hike by an average of 75 percent, after nine years. Tariffs for the religious category were increased by 555 percent, drawing some ire from Sri Lanka’s politically powerful Buddhist clergy.
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Sri Lanka has been in the midst of an energy crisis on top of a crippling currency crisis, resulting in daily scheduled power outages islandwide. In March 2022, daily power cuts extended to as long as 13 hours, drawing angry protests from consumers.
The government had been pushing for cost-reflective tariffs, leading to the rate hike in August introduced to lessen the burden on the loss-making CEB. The move attracted some criticism, particularly from religious organisations whose electricity consumption had been heavily subsidised.
Wijesekara, who has been at the receiving end of the criticism, said this subsidy that was borne by consumers across other tariff categories including households and industry. A leading Buddhist monk who was active in Sri Lanka’s Aragalaya (Struggle) anti-government protests has launched a campaign against the price revision, threatening not to pay.
As protests threatened to intensify, President Wickremesinghe wrote to the country’s Buddhist prelates to go for solar panels to cut down on electricity costs. He said the panels could be provided to religious places at cost or with the required funds to import their own panels.
In his letter, the president noted that around 42,950 Buddhist temples and other registered religious and social service centres in the country have been connected to the main power grid.
“Only around 9,800 connections that consume more than 180 units will have [to pay higher rates under the new scheme],” he wrote.
“It is a fact, however, that with the revision of the new electricity bill, places with high electricity consumption of more than 180 units will be affected.” (Colombo/Sep29/2022)
