• Janaka Ratnayake further claims CEB resource transfer to 14 companies, de-prioritising of water needs of farmers, PUCSL replacement with ‘puppet’ regulator  

The proposed amendments to the Sri Lanka Electricity Act, No. 20 of 2009 will bring about many negative consequences such as jeopardising the country's energy security, reducing the priority given to the water related needs of farmers and the general public, and establishing a puppet like body to regulate the power sector instead of an independent body like the Public Utilities Commission of Sri Lanka (PUCSL), claimed the PUCSL Chairman, Janaka Ratnayake.

Speaking to The Daily Morning yesterday (2), Ratnayake revealed that a seven-member committee appointed as recommended by Minister of Power and Energy, Kanchana Wijesekera has prepared a set of proposals and a draft to abolish the Ceylon Electricity Board (CEB) Act and to transfer its resources to 14 companies established under the Companies Act, No. 7 of 2007. If the proposals in the relevant draft are implemented, he said that the energy security will be under the control of the said number of companies due to the transfer of the Mahaweli and Laxapana power plants, the Uma Oya and other hydropower plants, and all thermal power plants including the Norochcholai coal power plant to separate companies. "A committee consisting of seven members has prepared a draft called the Sri Lanka Electricity Industry Reform Bill to completely abolish the CEB and to transfer its resources to 14 more companies. It must be said that instead of the task assigned to this committee, they have done tasks that are not related to them. The Cabinet of Ministers has assigned this committee to study the institutional structure of the CEB and to make necessary recommendations. It is the institutional structure for efficient generation, transmission and distribution, but the draft prepared by this committee is aimed at achieving their personal ambitions. The draft contains objectives aimed at achieving personal and political goals rather than introducing actual reforms to the power industry. The main proposal of this draft is to abolish the CEB Act and to transfer all the resources of the CEB to 14 companies in the first phase. By that, all the power plants belonging to the CEB have been targeted to be transferred to six companies. The national transmission grid as well as the distribution systems will be handed over to separate companies. The power to purchase electricity will also be transferred to another company. Not only that, the management powers of the CEB’s Employees Provident Fund and Employees Trust Fund will also be transferred to a company. The establishment of another company has been proposed to transfer any remaining assets after transferring properties to the above companies. If this proposal is implemented, energy security will be at risk," he further claimed.

Ratnayake further said that due to the inclusion of provisions in the draft that water should be released from the rivers and reservoirs that supply water to the hydropower plants, giving priority to the needs of the hydropower plants, the agricultural and drinking water related needs of the farmers and the public will lose priority. "Listed first in the current priority list is the release of water for drinking and agricultural needs, but in the proposed draft, priority has been given to hydroelectric power plant companies. The fundamental rights of the public are being violated by imposing a condition that water must be released for these companies to generate electricity."

Speaking further, he revealed that the draft in question has made provisions to abolish the current regulatory body of the power sector, the PUCSL. “The PUCSL is an independent body accountable to the Parliament. It has always been an institution responsible for policy development and implementation. As a result, the ability of the Power and Energy Minister to directly influence the decisions of the Commission has been blocked. It is because of this situation that the Commission was able to reject 16 emergency power purchase proposals submitted by former Power and Energy Ministers. The draft, which has been prepared, is to replace the PUCSL with an institution called the Electricity Regulatory Commission under the Power and Energy Minister. Its members as well as Director General are appointed by the Minister. Under this situation, instead of an independent body that protects the rights of the electricity consumers and the public, a puppet-like regulatory body will emerge. Not only that, this draft has proposed to establish a number of other institutions and committees. The majority of their members are appointed by the Power and Energy Minister. What should be done at this time is to further strengthen the powers of independent bodies such as the PUCSL," added Ratnayake.