Claiming the misuse of over Rs. 12 billion through the payment of capacity charges to the ACE Power Plant in Embilipitiya over the past 15 years, which allegedly amounts to several times the power plant’s actual value, the Electricity Consumers Association (ECA) has urged the Committee on Public Enterprises (COPE) and the Auditor General’s Department to look into the matter.
Speaking to The Daily Morning yesterday (21), ECA Chairman Sanjeewa Dhammika claimed that the Government had paid more than Rs. 12 billion to the ACE Power Plant as capacity charges during the course of 15 years. Charging that the said amount is several times higher than the power plant’s value, he said that it is problematic that the relevant institutions, such as the Attorney General’s (AG) Department and the Auditor General’s Department, are not taking adequate steps to prevent such irregularities.
“The payment of capacity charges to the Ace Power Plant is a financial fraud. Due to this condition of capacity charges, more than Rs. 100 million is paid to it per month. The payment of that sum is mandatory even when electricity is not purchased. Accordingly, there is a misuse of a large sum of money. It is surprising that the AG’s Department, as well as the Auditor General’s Department, have been following a silent policy regarding this unfavourable condition put forward by the Ace Power Plant,” he alleged.
Speaking further, Dhammika said that they had complained to the COPE regarding the non-implementation of a decision taken by the Cabinet of Ministers in 2018 to take over the Ace Power Plant in Embilipitiya under the Ceylon Electricity Board (CEB) after the expiry of the relevant power purchase agreement in June 2021. “Even the Auditor General has not conducted a proper audit regarding the non-implementation of this decision. Instead, the Auditor General’s Department is engaged in an action that wastes time and money by auditing minor issues of CEB employees.”
The Cabinet had approved a proposal presented by then-Minister of Power and Renewable Energy and incumbent State Finance Minister Ranjith Siyambalapitiya, in which it was stated: “After the expiry of the power purchase agreement in June 2021, the CEB is provided an option without obligation to acquire the power plant (ACE Embilipitiya).”
Speaking at a media briefing on 15 August, Power and Energy Minister Kanchana Wijesekera said that electricity would be procured from private power plants as hydropower generation has been affected due to the prevailing drought situation. He also said that such purchases would be done on the basis that the Government would provide fuel. Refuting allegations of the alleged irregularities in the process, he added that the process would be carried out in a transparent manner.
Meanwhile, claiming that numerous irregularities are likely to occur in the proposed emergency power purchase process, the ECA recently stated that they would inform the relevant parties, including the Public Utilities Commission of Sri Lanka (PUCSL) and the Opposition political parties, regarding such.