Charitha Herath raises concerns on power sector reforms

Thursday, 4 January 2024 02:56 - - {{hitsCtrl.values.hits}}

Prof. Charitha Herath

Says robust evaluation of proposed power sector reforms in SL is imperative
Stresses thorough assessments are needed to ensure effectiveness and sustainability of reforms
Highlights many gaps in proposed bill and urges Power Minister to rectify them

Parliamentarian Prof. Charitha Herath in a communique to the Minister of Power and Energy Kanchana Wijesekara raised concerns regarding the proposed reforms to the country’s power sector.

The MP, while noting that Sri Lanka’s power sector has been undergoing substantial reforms since the early 2000s, said a robust evaluation of the proposed power sector reforms in Sri Lanka is imperative and should encompass comprehensive studies, including technical, economic, sensitivity and risk analyses.

“These assessments play a crucial role in gauging the potential impact and outcomes of anticipated reforms in a vital sector like electricity,” he said. However, the MP noted that regrettably, no analysis reports accompanying the proposed Bill or emerging during the recent process have been observed.

“It is essential that thorough and transparent assessments are conducted to ensure the effectiveness and sustainability of the envisaged reforms in this critical sector,” he added.

In his letter, Herath strongly advocated for a thorough review of analysis reports before determining critical timelines, attributes, and policy decisions associated with the electricity reform process. He highlighted several concerns regarding the reforms proposed in the letter.

The MP said there is concern over the potentially disproportionate authority granted to the Minister and that there are also notable disparities between the objectives outlined in the report of the cabinet-appointed committee and the Act.

He said the proposed mechanism for selecting and appointing individuals to institutions lacks professionalism and transparency while the reform timelines appear aggressive, providing limited flexibility for necessary corrections.

Herath also raised issues with the automatic activation of Act provisions by noting that they may hinder changes in Government policy without amending the Act.

Other concerns raised included the lack of harmony with other acts such as the Sri Lanka Sustainable Authority Act No.35 of 2007 and that the least cost principle is not ensured through the reforms.

“Lack of provisions for dispute resolution and customer safety is a notable gap. The absence of provisions for Consumer Protection throughout the Act is a matter of concern,” the MP said.

Given the significance of these concerns, Herath urged Wijesekara to address these issues for the betterment of the proposed reforms. “A more comprehensive and transparent approach will ensure the successful realisation of the intended objectives and foster public confidence in the transformative changes to our electricity sector,” he noted.