• Claims Government preparing to facilitate Rs. 233 billion transmission work cost for 10 projects and to overpay for generated electricity unit purchases  

The Electricity Consumers’ Association (ECA) claimed the Government is preparing to facilitate transmission work related to 10 selected solar energy projects at a cost of Rs. 233 billion, although such costs have usually been borne by the relevant companies in the past.

The ECA also alleged the Government is planning to pay Rs. 18 per unit of electricity generated from these projects, despite the average price paid for a solar power unit is  Rs. 17.32.

Speaking to The Daily Morning, ECA General Secretary Sanjeewa Dhammika said that more than 2,000 applications have been submitted for the installation of solar panels, but that the Government has not granted approval for a single new project since coming to power. Instead, he alleged that the Government has moved ahead with plans to fund transmission work for these selected solar projects, which he said is in violation of the existing provisions.

“As stipulated in the relevant legal provisions, electricity projects can only be carried out through government-to-government agreements or through a competitive bidding process. In addition, there is a system where the Government installs power plants below 10 megawatts and hands them over to small and medium-scale businesses for a period of 20 years at a fixed price. What they are preparing to do with these 10 projects does not fall under any of these categories,” he said.

He further explained that the companies undertaking these solar projects are required to bear the costs of both power generation and transmission. “However, in this instance, the Government is preparing to use public funds to cover the Rs. 233 billion transmission cost. When the total cost of Rs. 233 billion is divided among the country’s seven million electricity consumers, each consumer would ultimately have to bear a cost of Rs. 33,600, which would rise even further once interest payments are added."

Minister of Energy Kumara Jayakody, and the Secretary to the Energy Ministry and Acting Ceylon Electricity Board Chairperson, Prof. Udayanga Hemapala, were not available for comment.