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Patali, Kanchana  butt heads over   CEB privatisation

Patali, Kanchana butt heads over CEB privatisation

09 Dec 2022

  • Former and current Energy Ministers in heated debate over whether hydropower plants will be sold

 A heated debate took place in Parliament yesterday (8) between former Minister of Power and Energy, current Leader of the 43rd Brigade, and “independent” Opposition MP Patali Champika Ranawaka and incumbent Power and Energy Minister Kanchana Wijesekera during a discussion on the Government’s plans to restructure the Ceylon Electricity Board (CEB), where the former charged that hydropower plants in the country would also be privatised, leading to the public losing its drinking water supply, while the latter asserted that hydropower plants will remain with the Government and urged the former to not obstruct the restructuring process simply because he was unable to restructure the CEB during his tenure as the subject Minister.

Speaking in Parliament, Ranawaka stated that according to the proposals put forward by the committee appointed for the restructuring process of the CEB, the latter will be divided into 18 companies. 

“There are to be six companies especially for power generation, namely, the Laxapana Hydropower Station, the Mahaweli Hydropower Complex, the Samanalawewa Hydropower Station, and other hydropower plants belonging to the CEB, along with the Puttalam Power Plant, the Kelanitissa Power Station, other thermal power plants, and the Mannar Wind Power Project. I emphasise that the power plants built along the Kelani and Mahaweli Rivers are not only for power generation, but for drinking water, irrigation, and other purposes. If these are transferred to private companies, they will definitely give priority to hydropower and not other purposes.” 

He further stated that as of now, four distribution zones have also been proposed to be transferred to private companies, while all loans are to be shifted to another company, and a different regulatory institution is to be established instead of the Public Utilities Commission of Sri Lanka (PUCSL). According to him, it has been proposed to establish an official tribunal, and it has also been proposed to shift the authority from the Ministry of Energy to the Ministry of Finance and to establish an institution similar to one that existed in 2002 called the energy supply committee.

“We should conduct a study on this. The hydropower in this country is used for the frequency control of the national grid. That cannot be given to a private company.” 

In response to Ranawaka, Wijesekera stated that the committee report on restructuring had been sent to all MPs and stated he was disappointed in Ranawaka for having made a statement after perusing through just one part of the report while omitting the rest. He further noted that ownership of the hydropower plants, wind power plants, and renewable energy projects will remain with the State.

“It was proposed by the committee that the Samanalawewa Hydropower Station, the Mahaweli Hydropower Complex, the Laxapana Hydropower Station, the Norochcholai Coal Power Plant, and the wind power plants be maintained as separate companies to improve efficiency. At the same time, the report has also proposed something that Ranawaka hasn’t read or hasn’t divulged to the public, which is that the wind and hydropower plants will be retained with the Government. Hence, the policy of the Government is that the Mahaweli Hydropower Complex, the Samanalawewa Hydropower Station, the Laxapana Hydropower Station, the Puttalam Wind Power Plant, and our renewable energy projects be retained as State projects. So, in response to his argument, these won’t be privatised. Therefore, I request him to not mislead Parliament and the public.”

Wijesekera added that according to the said report, the PUCSL will be suspended and separate regulatory committees will be appointed, as in other countries.

In response, Ranawaka stressed that he did not receive the said report and urged the Government to release a statement in this regard.

“He (Wijesekera) said that hydropower will not be privatised. We need a strong statement from the Government on this. I firmly state that with this privatisation, they are trying to create an energy market.”

Wijesekera then retorted: “He has just lied. I sent the report to him via WhatsApp on 28 November. I sent it to all MPs. He is also suggesting that we should keep this country closed, to not develop the tourism sector, and let the economy decline. That’s his opinion. That’s what he is trying to orchestrate, but the Government is not trying to do that. We need to develop the tourism sector, and give opportunities to industries. That’s what we are attempting to do as the Ministry of Power and Energy and the Government. Everyone agrees that this restructuring has to be done. But just because you (MP Ranawaka) couldn’t do so during your tenure, don’t try to obstruct it when we are attempting to implement it. Now, when we are trying to bring this Bill and improve efficiency, you are obstructing it.” 

Addressing the media on Wednesday (7), Ranawaka asserted that the public should not allow the privatisation of the Kelani or Mahaweli Rivers, claiming that it could deprive the Western Province of drinking water. 

“The people of the Colombo and Gampaha Districts are supplied water from the Kelani River. The Mahaweli River supplies the Mahaweli region farmers with water. After selling these to companies, if they say that they cannot supply water to Colombo or any of these places, what will happen?” queried Ranawaka. 

“The most dangerous thing about this is the privatisation of hydropower. The public should not let this happen because we have finished paying for the Kelani River based Laxapana Power Plant, and we have finished paying for the Mahaweli Power Plant. The Government has no right to sell these. Even though the people sitting in high places dream about bringing in US dollars, these are the people’s national resources.”




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