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The Electricity Users’ Association (EUA) yesterday called on the new Government to implement measures to improve Sri Lanka’s energy security, including kick-starting the Kerawalapitiya LNG power plant, and fast tracking solar plants that have been in the pipeline since 2016.
The Association also criticised both the former officials of the Power and Energy Ministry as well as the Ceylon Electricity Board (CEB) for failing to implement consistent and practical policies in the past three years.
The EUA, in a statement, emphasised what they termed as “corrupt deals,” which they alleged led to the CEB making significant losses and the non-implementation of power plants under general plans that had allowed for emergency power purchases, which had come at significant cost of public funds.
“The annual loss of the CEB is Rs. 130 billion this year. It is no secret that corrupt deals contributed to this loss,” EUA said in a press release.
EUA also revealed that there would be no electricity shortages in the next three years if the 500+ megawatt capacity generators used by State institutions were added to the national supply, a task that can be done within a two to three month period, they said.
While mentioning that President Gotabaya Rajapaksa’s Election Manifesto states that steps will be taken to abolish agreements entered into by the former Government to purchase electricity at exorbitant costs, EUA also suggested solutions to the current issues in the industry.
Besides the abolition of the above-mentioned short-term agreements and private power plants being taken under State ownership, EUA suggested that the Kerawalapitiya LNG power plant tenders are handed over to selected parties.
Generation of 65 megawatts of solar power through panels paid for with $50 million Asian Development Bank grant and fast-tracking the approval for the 1,400 megawatt capacity solar power plant proposed in 2016 are also among the suggestions made by EUA.
They also commended the Public Utilities Commission of Sri Lanka (PUCSL) for rejecting the deal with a Turkish company for the purchase of 200 megawatts of power. The deal was backed by the former Power and Energy Minister, the Ministry Secretary and a group of CEB engineers, EUA said.
According to EUA, calling off the short-term deal resulted in a Rs. 5 billion saving, which would have otherwise been used to purchase 200 megawatts of emergency power. In addition to this, EUA has confirmed with the Auditor General’s Department and the Committee on Public Enterprises that such purchases are in breach of the Sri Lanka Electricity Act.
The EUA further explained that CEB has purchased power from private companies instead of following the highly competitive method of tender offers, which is the norm. According to EUA, CEB has made a request to purchase 100 megawatts in 2016, 120 megawatts in 2017, 170 megawatts in 2018, and 370 megawatts in 2019, in addition to the tenders offered, despite being warned by the Commission that a single unit could be purchased for more than Rs. 40.
EUA added that the losses incurred by CEB are also due to delays in the construction of low-cost power plants approved under long-term power generation plans. “Not a single power plant has been constructed since 2016,” EUA said, adding that on 8 March 2016, the PUCSL had warned the CEB that construction delays would result in a shortage.
“There has also been a delay in the construction of solar power plants that would have a capacity of over 200 megawatts,” EUA said, adding that the total capacity of all delayed projects amounts to close to 1,000 megawatts. If this had been added to the national supply, there would not have been a need to purchase emergency power on short-term agreements.
