National Chamber of Commerce says power cuts hindrance

Thursday, 4 April 2019 01:46 - - {{hitsCtrl.values.hits}}

The National Chamber of Commerce (NCCSL) yesterday in a statement said the on-going power cuts are a hindrance of SMEs and the corporate sector.

Following is the full statement.

The decision of CEB to cut electricity in two time slots within the day, has created severe inconvenience to small and medium industries as well as corporate entities. Larger industries are not affected to an extent, because most of them have standby generators. It’s the small and medium scale businesses and industries that are mostly affected.

Further the SMEs and corporate entities are facing greater difficulties of not having a proper schedule for power cuts. Irregular power cuts taking place in the country, are causing further disturbance to their production processes, and they are not in a position to plan production schedules effectively. Due to this condition, export oriented production houses may fail with their deliverycommitments which may lead to, loss of future orders. This crisis situation may further create a negative impact on attracting Foreign Direct Investments to the country and well as the Ease of Doing Business Index ranking.

The rift between the CEB and the Public Utilities Commission of Sri Lanka (PUCSL) has to be urgently sorted out as it is hindering the implementation of power projects. The public’s right for uninterrupted power should be the main aim of the Ministry of Power and Energy and they should be able to decide what should be the best option for this country on a properly planed criteria as Government is offering many incentives to the SME sector to increase production and exports.

A balance between coal, LNG, renewable energysources such as solar and wind power has to be decided by a Government-appointed panel of experts in these subjects as well asenvironment bodies who are qualified and accountable and power plant type and locations should not be decided by various peoplehaving selfish motives.

There are two power cuts occurring in the morning and evening hours. Atleast if the CEB could get the large industries and the hotels to start using their generator sets (500KVA or more) and pay for using them, it may be better than paying the private power plants who are waiting to supply power at rates between Rs.25 to Rs. 30 per unit.