Low cost electricity - Govt's aim - Minister Pavithra Wanniarachchi

By Uditha Kumarasinghe

Her beaming smile and friendly disposition would unravel all political enigmas. Descending from a political family, Minister Pavithra Wanniarachchi is one of the senior legislators in the UPFA Cabinet.

She has held many ministerial portfolios and as Power and Energy Minister today she carries a heavy burden on her shoulders to provide 'light' to the country. The Minister in an interview with the Sunday Observer said that her main task is to ensure the supply of electricity at low cost and also to bring down the electricity rates as early as possible. Steps should be taken to generate electricity using coal and hydro power while restricting the generation of electricity using fuel, she said.

The Minister said since 1982 until President Mahinda Rajapaksa assumed office in 2005 none of his predecessors did have the courage to construct a single coal-fired power plant since they thought it would be politically disadvantageous for them. Despite pressure exerted upon him, President Rajapaksa launched the construction of the Norochcholai power project. At present the Ministry is planning to go for more low-cost power generation projects to provide a lasting solution to the power crisis without resorting to patch work.

Minister Wanniarachchi said that the CEB has to incur huge losses due to generation of electricity at high costs and as a result, the CEB has to pay Rs. 22 or 23 per each unit of electricity generated. A unit of electricity is sold to nearly 25 percent of the population at Rs. 3 while another 25 percent gets it at Rs. 4.70.

This is evidence of severe losses incurred by the CEB due to providing electricity at lower rates. To remedy this situation steps should be taken to bring down the cost of a unit of electricity to at least Rs. 10.

During the past few years, 70 percent of the electricity were generated using fuel and the hydro electricity generation was restricted to only 30 percent. After I took over this Ministry, we are exploring the ways and means of further developing hydro power generation.

Excerpts of the interview:

Q: The Opposition and other organisations severely criticised the revision of electricity rates mainly because it affected the poor badly. Could you explain this?

A: As a Government which came to power with the people's mandate, we did not like to go for an electricity tariff hike. When I assumed office in this Ministry, we had to clear a mounting debt of Rs. 364 billion to the Ceylon Petroleum Corporation (CPC), State banks and private power generation companies this year.

The CPC had to obtain loans from state banks to supply fuel to the Ceylon Electricity Board (CEB). As a result, the People's Bank and the Bank of Ceylon didn't have sufficient funds even to provide loans to the people. At the time I took over, this ministry had faced a crisis situation.

Each year, electricity prices had been revised. During the UNP regime at times electricity rates had been increased by one hundred percent.

This electricity tariff hike was not made haphazardly. The Public Utilities Commission had given a one month's time to seek public views on the tariff hike. As the issue was dragging further, it assumed serious proportions.

The CEB has to incur this huge loss due to the high cost of electricity generation. The CEB has to incur Rs. 22 or 23 per unit of electricity generated. But a unit is sold at Rs. 3 to nearly 25 percent of the population. Another 25 percent gets a unit of electricity for Rs. 4.70.

This accounts for the severe losses incurred by the CEB due to providing electricity at lower rates. To remedy this situation, steps should be taken to bring down the cost of generating a unit of electricity at least to Rs. 10. In addition to the generating cost, Rs. 7 is added on each electricity unit sold to the electricity consumers. However, a unit of electricity is provided to nearly half of the country's population at Rs. 4.70 a unit. So the present crisis faced by the CEB is unavoidable. Therefore, a decision had to be taken to revise electricity rates. This price revision was done as there was no alternative. However, electricity rates had been revised every year. Our aim is to generate electricity at low rates.

Q: Many people argue that the escalating electricity tariff cannot be brought under control until the Government takes over the private power generation companies. Do such companies have a say in the determination of electricity rates and if so how it works?

A: The construction work of all major hydro power generation projects was completed in 1982. Instead of buying power from private sector thermal power plants, no Government or Leader had the courage or self-confidence to launch any alternative power generation projects in Sri Lanka. The Power and Energy Ministry and the CEB had signed agreements with private sector power generation companies for different rates. President Rajapaksa had instructed not to extend the agreements with the private power generation companies.

The agreements with these companies will expire in another few years. Therefore, I can assure that I would not resort to any such agreements during my tenure of office. According to agreements signed earlier with private sector power companies, the CEB has to pay both the fuel cost and production cost incurred by these companies. At the moment we are seeking legal advice from the Attorney General whether there is any possibility of amending these agreements.

Q: There is the allegation that despite the enormous potential for hydro electricity generation, today the country largely depends on thermal power at exorbitant costs. Could you explain this?

A: Over the past few years, 70 percent of the electricity were generated by using fuel while the hydro electricity generation was restricted to only 30 percent.

After I took over this Ministry, we have been exploring the ways and means of further developing hydro power generation. Normally rains are not expected during May and June. This time we had rains during these two months due to climatic changes in our region.

This helped to reduce the cost on thermal power plants to some extent. Otherwise during these months, we will have to depend largely on thermal power plants. This has become a sort of relief to the CEB, which is overburdened with its debt due to CPC and State banks.

Q: What is the total MW capacity to be added to the national grid by the proposed coal fired generation plants? When will these new plants begin to function and will the electricity rates come down?

A: Whether the CEB has reaped profits or recouped its the losses can be ascertained only by the end of this year. If we have enough rains during the next six months, it would be advantageous for us.

Otherwise we will have to face a crisis situation once again. We had commissioned the Broadlands hydro power project last week. It had been delayed for a long time due to various reasons. We are trying our best to complete the second stage of the Norochcholai power plant this year.

It will add 300 MW to the national grid. We hope to add another 300 MW to the national grid under the third stage of Norochcholai power plant by the middle of next year. This would help sell a unit of electricity at Rs. 9. We will also launch the construction work on Sampur power plant soon and it would be a joint venture between Sri Lankan and Indian Governments.

At present its project report has been referred to the Attorney General for approval. On its receipt we will launch the construction work on the project.

Following a request by President Rajapaksa during his recent visit to Japan, the Japanese Government had pledged assistance to construct a coal-fired power plant in the South and the Japanese Ambassador held discussions with me on the proposed project.

At present we are drawing up plans for this project. Steps are also being taken to launch another hydro power project at Uma Oya.

Our intention is somehow to reduce the electricity tariff. To give effect to it steps should be taken to generate electricity using coal and hydro power while restricting the use of fuel. Since 1982 until President Rajapaksa assumed office in 2005 none of his predecessors had the courage to construct a single coal power plant as they thought that it would be politically disadvantageous for them.

In 1982, the then President J.R. Jayewardene tried to construct a coal power plant at Trincomalee.

He later gave up that project due to protests by certain NGOs. In 1992, President R. Premadasa too wanted to construct a coal power plant in the South.

That was also abandoned due to public protests. Former President Chandrika Bandaranaike Kumaratunga also wanted to launch the Norochcholai coal power plant in 1999. The Japanese Government had even allocated money for this project. It was also abandoned due to public protests. On his assuming office President Rajapaksa took steps to construct the Norochcholai power plant despite mounting protests.

Now we have decided to go for more low cost power generation projects to provide a lasting solution to the energy crisis without depending on patch work.

Q: President Mahinda Rajapaksa has said that the public servants should feel the pulse of the people. What do you propose to do away with red-tape, bottle neck, indifference and apathy on the part of public servants?

A: I personally believe there are public servants who are fully dedicated to their work. Those who had reached high positions in public life due to free education, should render some service to the country at large. There are certain public servants who have indulged in frauds with no sense of patriotism.

To overcome this situation, an attitudinal change is vital among the public servants. Private sector employees are always called upon to safeguard the good name of their institutions. Various workshops are always held to encourage and change the attitudes of private sector employees. Such awareness programs are rare in the State sector. I think there is an acute need to change the mindset of public servants.

Q: Allegations are often made that women representation in all elected bodies including the national Parliament is far disproportionate to their male counterparts in the country. What do you propose to remedy this situation?

A: More women representatives should be elected to Local Government bodies, as it is difficult to create national level women leaders within short notice. Under the present electoral system, it has become very difficult for women to survive in politics. Women have to compete with men and they too should have wealth to conduct election campaigns. It is important for a woman to get the consent of her husband to enter politics. Fortunately my husband encourages me to continue in politics.

I don't know whether all husbands think in the same manner. Therefore, if a woman wants to enter politics, first her husband and the family members should extend their support to her. Otherwise it would be very difficult for a woman to be in politics. Decisions should be taken at the Pradeshiya Sabha level to provide more opportunities for women to enter politics. After gaining experience in local government bodies women could seek election to Provincial Councils and Parliament later.

Q: The incidence of rape, killings, abductions and sexual abuse of women is on the increase. Is this due to leniency of laws or non-enforcement of existing laws?

A: I think the Government has introduced sufficient laws permitting stern action against those guilty of rape, killings and sexually abuse of women. Amendments where necessary were also introduced to some laws. Special Police Units supervised by Women Police officers have also been set up at Police stations to lookafter women.

Very strict laws have been introduced to prosecute those who have caused violence against women. A new Act has also been introduced to prevent domestic violence against women. Under this Act if a woman is subjected to domestic violence by her husband in their home, she can take legal action against her spouse.

I think there are enough laws to safeguard women.

The mindset of the people needs a change. At present incidents of rape, killings and abductions of women are often reported. Sometimes films and other programs telecast may also influence people to resort to crimes. These incidents cannot be fully prevented only by laws.

Many rape cases and killings of women were also reported from Ratnapura district. Steps should be taken to inculcate moral values in the people.

This is the responsibility of politicians, civic organisations and the media as well.

Q: The election heat is building up in Wayamba, Central and Northern provinces. The number of development projects launched by the Government in all parts of the country is more than enough to ensure victory for the Government. Your views?

A: The Government would be able to secure a resounding victory in Wayamba and Central provinces. The Government has launched a mega development drive in the North. The people in the North should vote the UPFA into power at the Northern Provincial Council, so that more major development projects could be launched. People in the North should take a decision.

Q: A number of ugly incidents involving Pradeshiya Sabha members has happened recently. How do you propose to check this rising trend in the interest of national politics?

A: Steps should be taken to check these incidents. If anybody takes to politics with the intention of earning money, that is completely wrong. During the past, even Gam Sabhas were represented by reputed people.

Those days there were no thugs or hooligans even in local politics. My personal view is that if a Local Government member has committed any fraud or any other offence, his party should not give him nominations. I hope the SLFP will also maintains the same stance.

Q: You are a second generation product of a political dynasty. Do you have plans to pass your political mantle to one of your siblings?

A: I have faced many hardships due to politics. Several months ago, I had to even undergo a surgery. The doctor who performed the surgery told me that it was mainly due to over-stress.

The doctor asked me whether it is worthwhile to engage in politics by making such sacrifices? We can get thousands of votes at every election yet we have to make many sacrifices in providing solutions to the problems of those who voted for us.

A politician has to sacrifice his personal life as well as his business activities to survive in politics. I personally believe my children should not undergo such hardships that I have faced in my political career.

I think they should live happily. My children are still young and I don't know what decisions they will make in the future.