By Maheesha Mudugamuwa
A mafia has gripped the electricity sector resulting in an internal battle evolving in both the power sector as well as the Cabinet.
Minister of Megapolis and Western Development Patali Champika Ranawaka recently alleged that a mafia was posing a threat to the power sector.
This has now resulted in a clash between the Ceylon Electricity Board (CEB) and the Public Utilities Commission of Sri Lanka (PUCSL).
Ranawaka, a former Minister of Power and Energy, said that there was an urgent need to take prompt action against businesses and political mafias operating in the electricity sector. The Minister further claimed that it was he who acted to curb fraud and corruption in the power sector and he pushed the CEB towards success every time the Government and the Finance Ministry supported him.
Explaining the measures he took during his tenure as the Minister of Power and Renewable Energy, Ranawaka noted that in 2015, he was able to make the CEB a profit-making entity. “We were able to earn a profit of Rs. 20 billion at that time when some people expected us to suffer losses of Rs.30-40 billion. I put all my efforts to make the sector corruption-free,” the Minister added.
According to Ranawaka, the power sector had changed its course when it was out of his control. “I have communicated my stance with the Cabinet Ministers regarding this issue. In fact, I have compiled a book on malpractice and irregularities in the sector,” he averred.
Even though the “electricity mafia” allegation is not a new one, power sector experts demanded that Minister Ranawaka must reveal the names of those who are involved with the mafia. They said that if the Minister knew who was behind the mafia, there was no reason to hold back the information.
Heading for bigger losses
Responding to the allegation levelled by Ranawaka, the CEB Engineers’ Union (CEBEU) alleged that it was Minister Ranawaka who created the “electricity mafia” and act as the representative of the global LNG mafia in Sri Lanka. CEBEU President Saumya Kumarawadu told The Sunday Morning that since the last phase of Norochcholai was completed in 2013, the Government was unable to build a new power plant in Sri Lanka, which was the root cause for the looming power crisis in the country.
The responsibility for the delay in building new power plants should be taken by the PUCSL, as they have opposed the plans prepared by the experts in the field, he said.
“As engineers, we know what suits the electricity sector of the country. But it was Minister Ranawaka who appointed the PUCSL to monitor the CEB by violating the CEB Act,” Kumarawadu alleged.
Predicting that there could be a huge power crisis in the country within the next few years, CEBEU President stressed that at present, the country’s electricity sector was totally depending on the Norochcholai Power Plant, and since all three machines were currently working on a daily basis, there was a risk of breakdowns in the future. However, if there was a breakdown in either one of the three machines in Norochcholai, the situation would be worse and averting power cuts would not be an option.
Highlighting the need of low-cost power plants, Kumarawadu stressed that the situation now could be different if the CEB could build the proposed Sampur Coal Power Plant. Accordingly, only the experts know what is best for the country’s electricity network and not the politicians or other government officials.
Alleging that there was an LNG power mafia in the country, Kumarawadu pointed out that a group led by a powerful minister is acting as the head of that mafia, promoting LNG in the country.
“We need a mix in Sri Lanka and low-cost power plants. We need power plants that could be built within a short period of time. It will take at least five years to build a plant, and until then, we should have short-term plans,” he added.
“Hydropower generation is only 15% at present, as there was no water in the hydropower reservoirs due to the dry weather situation. But, a few months ago, hydropower generation was about 50% and that was why the country didn’t experience power cuts. No one can predict that Norochcholai will run without any issue because it is currently run at high temperature,” he stressed.
Commenting on emergency power purchasing, the CEBEU said that they were against the purchase of emergency power as it was highly expensive, and even if the emergency situation prevails only for a few months or so, the CEB would have to enter into agreements for at least a period of one year.
Kumarawadu said the loss of the CEB, which was around Rs. 50 billion in 2017, was reduced to Rs. 20 billion last year, but this year it would be around Rs. 80 billion.
Passing the buck
When The Sunday Morning contacted Minister of Power, Renewable Energy, and Business Development Ravi Karunanayake for his reaction toward the “electricity mafia”, he said that there was a mafia in everything and the most important thing was to realise who was behind the mafia and who created it.
He, however, refused to respond to the allegation levelled by Minister Ranawaka saying that he couldn’t comment on his own colleague, but at the moment, he hadn’t seen any mafia.
“I opened my ministry doors to everyone. There is nothing to hide and everything is done with the goal of moving forward. I believe if every minister does that, half of the claptrap would stop. We have engineers who are excellent. Our job is to ensure the resource use, and ensure that there’s no such ‘emergency’…to manage the situation to ensure that there’s no crisis,” the Minister added.
Assuring that there would be no power cuts in the future as predicted by the CEB engineers, Karunanayake said the electricity supply would be an uninterrupted one in the future.
Speaking to The Sunday Morning, Minister Ranawaka denied the allegations made by the CEBEU saying that they were baseless.
He said: “There is no mafia called the ‘LNG mafia’, and LNG power plants are accepted by the world. My plan was to generate LNG power through gas in the Mannar Basin,” adding: “PUCSL is a regulatory body and it was formed in 2009, and there are no legal issues about the formation of the commission.”
Meanwhile, PUCSL Spokesman Jayanath Herath told The Sunday Morning that the PUCSL had never delayed the construction of any power plant, instead pushed the CEB and the Ministry to build one immediately to avert any possible crisis in the future.
According to the Commission, it was the CEB that should take responsibility for the looming power crisis and not the PUCSL or any other entity.
Herath noted that the PUCSL, from time to time, highlighted the negative impact delaying the construction of power plants would have on the national economy, adding: “We have approved the 2013 CEB plan, but none of the proposals were implemented so far.”
According to PUCSL, the total expected financial loss due to implementation delays of the plant schedule in the 2018-2020 Long-Term Generation Expansion Plan is Rs. 50.62 billion, and the financial loss due to any further delay beyond what is forecasted in the previous section will cost Rs. 3.43 billion for each month.
However, the Commission recommended expediting the procurement of the above mentioned power plants in accordance with the approved schedule, as a matter of national importance.
The Commission has made it clear that it didn’t recommend purchasing emergency power in the future to meet any capacity or energy deficit due to implementation delays of these upcoming power plants and is of the view that such costs should not be passed to the consumers through tariffs.
A mafia has gripped the electricity sector resulting in an internal battle evolving in both the power sector as well as the Cabinet.
Minister of Megapolis and Western Development Patali Champika Ranawaka recently alleged that a mafia was posing a threat to the power sector.
This has now resulted in a clash between the Ceylon Electricity Board (CEB) and the Public Utilities Commission of Sri Lanka (PUCSL).
Ranawaka, a former Minister of Power and Energy, said that there was an urgent need to take prompt action against businesses and political mafias operating in the electricity sector. The Minister further claimed that it was he who acted to curb fraud and corruption in the power sector and he pushed the CEB towards success every time the Government and the Finance Ministry supported him.
Explaining the measures he took during his tenure as the Minister of Power and Renewable Energy, Ranawaka noted that in 2015, he was able to make the CEB a profit-making entity. “We were able to earn a profit of Rs. 20 billion at that time when some people expected us to suffer losses of Rs.30-40 billion. I put all my efforts to make the sector corruption-free,” the Minister added.
According to Ranawaka, the power sector had changed its course when it was out of his control. “I have communicated my stance with the Cabinet Ministers regarding this issue. In fact, I have compiled a book on malpractice and irregularities in the sector,” he averred.
Even though the “electricity mafia” allegation is not a new one, power sector experts demanded that Minister Ranawaka must reveal the names of those who are involved with the mafia. They said that if the Minister knew who was behind the mafia, there was no reason to hold back the information.
Heading for bigger losses
Responding to the allegation levelled by Ranawaka, the CEB Engineers’ Union (CEBEU) alleged that it was Minister Ranawaka who created the “electricity mafia” and act as the representative of the global LNG mafia in Sri Lanka. CEBEU President Saumya Kumarawadu told The Sunday Morning that since the last phase of Norochcholai was completed in 2013, the Government was unable to build a new power plant in Sri Lanka, which was the root cause for the looming power crisis in the country.
The responsibility for the delay in building new power plants should be taken by the PUCSL, as they have opposed the plans prepared by the experts in the field, he said.
“As engineers, we know what suits the electricity sector of the country. But it was Minister Ranawaka who appointed the PUCSL to monitor the CEB by violating the CEB Act,” Kumarawadu alleged.
Predicting that there could be a huge power crisis in the country within the next few years, CEBEU President stressed that at present, the country’s electricity sector was totally depending on the Norochcholai Power Plant, and since all three machines were currently working on a daily basis, there was a risk of breakdowns in the future. However, if there was a breakdown in either one of the three machines in Norochcholai, the situation would be worse and averting power cuts would not be an option.
Highlighting the need of low-cost power plants, Kumarawadu stressed that the situation now could be different if the CEB could build the proposed Sampur Coal Power Plant. Accordingly, only the experts know what is best for the country’s electricity network and not the politicians or other government officials.
Alleging that there was an LNG power mafia in the country, Kumarawadu pointed out that a group led by a powerful minister is acting as the head of that mafia, promoting LNG in the country.
“We need a mix in Sri Lanka and low-cost power plants. We need power plants that could be built within a short period of time. It will take at least five years to build a plant, and until then, we should have short-term plans,” he added.
“Hydropower generation is only 15% at present, as there was no water in the hydropower reservoirs due to the dry weather situation. But, a few months ago, hydropower generation was about 50% and that was why the country didn’t experience power cuts. No one can predict that Norochcholai will run without any issue because it is currently run at high temperature,” he stressed.
Commenting on emergency power purchasing, the CEBEU said that they were against the purchase of emergency power as it was highly expensive, and even if the emergency situation prevails only for a few months or so, the CEB would have to enter into agreements for at least a period of one year.
Kumarawadu said the loss of the CEB, which was around Rs. 50 billion in 2017, was reduced to Rs. 20 billion last year, but this year it would be around Rs. 80 billion.
Passing the buck
When The Sunday Morning contacted Minister of Power, Renewable Energy, and Business Development Ravi Karunanayake for his reaction toward the “electricity mafia”, he said that there was a mafia in everything and the most important thing was to realise who was behind the mafia and who created it.
He, however, refused to respond to the allegation levelled by Minister Ranawaka saying that he couldn’t comment on his own colleague, but at the moment, he hadn’t seen any mafia.
“I opened my ministry doors to everyone. There is nothing to hide and everything is done with the goal of moving forward. I believe if every minister does that, half of the claptrap would stop. We have engineers who are excellent. Our job is to ensure the resource use, and ensure that there’s no such ‘emergency’…to manage the situation to ensure that there’s no crisis,” the Minister added.
Assuring that there would be no power cuts in the future as predicted by the CEB engineers, Karunanayake said the electricity supply would be an uninterrupted one in the future.
Speaking to The Sunday Morning, Minister Ranawaka denied the allegations made by the CEBEU saying that they were baseless.
He said: “There is no mafia called the ‘LNG mafia’, and LNG power plants are accepted by the world. My plan was to generate LNG power through gas in the Mannar Basin,” adding: “PUCSL is a regulatory body and it was formed in 2009, and there are no legal issues about the formation of the commission.”
Meanwhile, PUCSL Spokesman Jayanath Herath told The Sunday Morning that the PUCSL had never delayed the construction of any power plant, instead pushed the CEB and the Ministry to build one immediately to avert any possible crisis in the future.
According to the Commission, it was the CEB that should take responsibility for the looming power crisis and not the PUCSL or any other entity.
Herath noted that the PUCSL, from time to time, highlighted the negative impact delaying the construction of power plants would have on the national economy, adding: “We have approved the 2013 CEB plan, but none of the proposals were implemented so far.”
According to PUCSL, the total expected financial loss due to implementation delays of the plant schedule in the 2018-2020 Long-Term Generation Expansion Plan is Rs. 50.62 billion, and the financial loss due to any further delay beyond what is forecasted in the previous section will cost Rs. 3.43 billion for each month.
However, the Commission recommended expediting the procurement of the above mentioned power plants in accordance with the approved schedule, as a matter of national importance.
The Commission has made it clear that it didn’t recommend purchasing emergency power in the future to meet any capacity or energy deficit due to implementation delays of these upcoming power plants and is of the view that such costs should not be passed to the consumers through tariffs.