Parliament approves amendments to Electricity Act to liberalise power generation

• Bill passed by majority vote as Govt. defies threats of trade union action
• Bill allows for anyone to apply for license to generate power
• Power Minister says he will not bow to threats of TU action
• Says new Bill will enable rapid development in renewable energy sector
• PM welcomes passage of Bill

An amendment to the Sri Lanka Electricity Act to liberalise the generation of electricity was passed in Parliament yesterday by a majority vote.

The Bill was passed with 120 MPs voting in its favour while 36 voted against it. There were 13 abstentions when the vote was taken.

The House also voted on an amendment to the Bill moved by the Government as well as one moved by SJB MP Harsha de Silva. The Government amendment was carried by a majority vote while the Opposition amendment was defeated.

The Bill makes provision to allow any person to apply for a license to generate electricity; and to take away the restriction imposed on a person to be eligible to apply for the issue of a generation license to generate electricity over and above the generation capacity of 25 M.W. and allows any person to apply for the same without any demarcation on the generation capacity.

Minister of Power and Energy Kanchana Wijesekera who had to brave threats of trade union action by Ceylon Electricity Bureau (CEB) including an island wide blackout remained defiant during the debate and said he would not bow down to threats and would take on the power sector mafia that has sabotaged moves to liberalise the sector and go for cheaper power sources such as renewable energy.

Wijesekera said the amendment was essential for the quick development of the renewable energy sector and promised to keep the public informed of investments and plans for renewable energy.

The Minister said he hopes to encourage foreign direct investments as well as opportunities to local developers to participate in the Renewable Energy Plans

Prime Minister Ranil Wickremasinghe welcomed the passage of the Bill and thanked Wijesekera for seeing it through.

“I welcome the adoption of the Sri Lanka Electricity (amendment) Bill. This allows rapid deployment of cost-effective renewable energy to the grid,” he said.