25th Anniversary - Lanka Electricity Company (LECO)

Seeing a banner near the Lanka Electricity Company office at Boralesgamuwa, announcing the 25th Anniversary of the organisation, my thoughts went back to the year 1982. It would be interesting for the readers to know how the idea of forming the Lanka Electricity Company originated.

Prior to 1982, and from the inception of the Ceylon Electricity Board (CEB) or much earlier, the Department of Electrical Undertakings (DGEU), the supply of electricity was done by Local Government Authorities - The Urban Councils (UCs) Town Councils (TCs) etc., under the Ministry of Local Government. They were termed Licences in terms of the Electricity Act and every year they had to renew their licenses, paying a fee. The electricity thus sold in bulk to the licensees was retailed to the consumers on a tariff approved by the Ministry for Power and Energy. The monies so collected from consumers by the local authorities were remitted to the Ceylon Electricity Board, regularly. However, as time passed, the local authorities failed to remit, making use of the funds for other activities of the local authority, which made the CEB face a severe cash liquidity problem. Repeated requests and warnings by the CEB, even to the extent of discontinuing supply had no effect. Under these circumstances, the Ministry for Power and Energy had to find a way out. When the matter was brought to the notice of His Excellency the President J. R. Jayewardena, who was also the Minister for Power and Energy, there were two suggestions made, either to disconnect the supplies or take over the supply by the CEB. I must mention here, that His Excellency, J. R. Jayewardena without any hesitation agreed to the disconnection of supply. A very drastic and disastrous action, specially when he was facing election to his second term of office. However, discretion being the better part of valour, the Secretary to the Ministry, Prof. K. K. Y. W. Perera, sensing the damage which would be caused, recommended the setting up of a special committee to look into possible alternatives. The committee comprised of Prof. K. K. Y. W. Perera, as Chairman, and members - R. Abeyratne Addl. Secretary, Ministry of Local Government, Housing and Construction, M. Somasunderam, Director, Public Enterprises, H. S. Subasinghe General Manager, CEB and the Secretary to the Committee was P. B. N. Fernando, Deputy General Manger (Transmission CEB).

The Committee considered six options, one of which was for the CEB to take over and distribute electricity, which was considered unacceptable due the work load which CEB had. Under the circumstances, the committee recommended the formation of an Electricity Distribution Company with Ceylon Electricity Board, Urban Development Authority and the Local Authorities participation. A Cabinet paper was submitted on the acceptance of the recommendations by his Excellency, and thereafter, taking action to register the company under the Register of companies ordinance etc. The first General manager of this newly formed Company (LECO) was Mr. H. S. Subasinghe, who had just retired as General Manger of CEB. I am personally aware of the initial hardships he had to face to put this organisation on the right footing.

As a consumer who is served by LECO, I am personally happy about the efficient manner the company runs today, attending promptly to complaints, regular billings, handing over the bill on a specific date etc. It is hoped that LECO will continue with the good work.