CEB unions challenging government and memories of the ‘Aragalaya’

The gloves are off, the loss-making CEB’s Ceylon Electricity Workers Union (CEWU) has warned President Dissanayake, it does not recognise the government’s Extraordinary Gazette declaring electricity-related services as essential! The government declared electricity services as being an essential service to prevent the CEB unions from escalating their trade union action against proposals to restructure the organisation and lay emphasis on cheaper renewable sources of energy.

The government would have us believe the CEB would remain state owned. The restructuring of the body includes breaking the monolith into five units, a planned target for greater investment in renewable energy to reduce costs, as well as to increase the share of renewables in the energy mix to 70% by 2030.

Its common knowledge today that between 2010 and 2019, the CEB accumulated a total loss of over Rs. 246 billion. In 2022 alone, the CEB recorded losses of over Rs. 100 billion. Unit prices escalate, and most losses occur during dry weather when the generation of hydro power drops.

During these periods the CEB relies on expensive oil-fired thermal power plants. In addition, the Board also purchases power at exorbitant rates from privately owned power generation operators to meet the energy gap. Hence the call to switch to renewable energy to reduce costs as well as to increase the share of renewables in the energy mix to 70% by 2030.

This is not the first time diverse governments have targeted increasing the share of renewables in the energy mix to reduce losses. 

Back in 2021 when then President Gotabaya proposed a shift to renewable sources, the Ceylon Electricity Board Engineers’ Union (CEBEU) opposed the idea claiming the state did not have sufficient resources needed to implement the scheme. They also claimed the target to generate 70% of electricity requirements through renewable energy by 2030 was unfeasible and threatened union action.

However other events, including Gotabaya’s overthrow intervened and plans were left in limbo. 

Subsequently immediate past President, Ranil Wickremasinghe proposed the unbundling of the CEB into smaller units with private sector participation. This was aimed at maximising efficiency. In addition Wickremesinghe also proposed a switch to cheaper renewable energy sources as a means to overcoming the CEB’s continuing debt burden.

CEB unions together with JVP support, castigated Wickremesinghe’s proposed changes. It described it as a scheme or move to destroy the CEB. This is the problem facing the government. They opposed very similar proposals months earlier. Workers believed them, but the JVP-led NPP government is now attempting to implement a similar plan with slight tinkering here and there. 

However, the reality is that structural changes in the CEB are essential. New and continuous supplies sources of cheap energy are a must and government needs to go forward with its statement of intent

With a workforce of more than 26,000 it is one of the biggest state owned enterprises (SOE). There is a genuine fear that the government’s proposed changes will lead to job losses.

The government needs to notify workers that despite its earlier opposition to the restructuring of the CEB, the changes government proposes will not lead to job losses. Workers’ fears are not baseless, especially in this day and age where ordinary families can hardly afford to have two square meals a day.

Eating humble pie is no enviable task. The government needs to proceed in implementing the restructuring of the CEB together with workers and trade unions –a difficult task given the earlier JVP stance on the subject. A difficult task no doubt, but one that needs to be done. 

Having misled the workers, the president and his men need to now undo the mistakes of their own making and regain the confidence of the working class, rather than readying to do battle with them. Electricity is an important segment of our daily life and strikes leading to sudden power cuts will not increase the government’s already flagging popularity. 

As we mentioned earlier, the government, even at this late hour, instead of locking horns with trade unions needs to sit down with them and perhaps in the late president Premadasa-like fashion restart a process of Consultation, Consensus and Compromise.

It cannot be too far from President Dissanayake’s mind (that even though he is now sojourning in Trump land) it was the extended power cuts which led to the ‘Aragalaya’ and the overthrow of an earlier president.