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CEB enginneers: Price of electricity bought from renewable energy power plants will go up
Ceylon Electricity Board’s engineers have warned that the passage of the amendment to Sri Lanka Electricity Act No 20 of 2009 will have serious repercussions on the country’s energy sector.
They said the amendment passed by Parliament on Thursday abolishing the purchase of electricity at the lowest price through competitive tenders would increase the unit price of electricity purchased from renewable energy projects.
The Ceylon Electricity Board Engineers Union (CEBEU) said that according to the amended Act, any interested parties could build any electricity project anywhere in the country with the approval of the Cabinet of Ministers on the basis of political and business affiliation at the cost of taxpayers’ money.
On March 7, the Government submitted to the Cabinet a proposal sent to the Board of Investment by Adani Green Energy Limited of India for a 500MW Wind and Solar project in the Mannar Basin and Pooneryn belt.
The unit price of power produced through the CEB-owned 100MW Thambapavani Wind Power Plant in the Mannar basin is less than 4 USD cents. However, according to Adhani’s proposal, they will provide a unit of renewable energy for approximately USD Cents 7.7, trade union and opposition parties claimed.
Power and Energy Minister Kanchana Wijesekera told Parliament on Thursday that the Memorandum of Understanding (MoU) signed by the Government with Adhani was a Government-to-Government (G to G) project signed between the governments of India and Sri Lanka. However, internal CEB sources said it was not a G-to-G project as claimed by the Minister.
Until 2013, according to the Sri Lanka Electricity Act No. 20 of 2009, the unit price of electricity purchased by the CEB from private renewable energy projects was set by a committee based on the Feed-in Tariff scheme.
Accordingly, some renewable energy units were purchased from Independent Power Producers (IPPs) for as high as Rs. 20-25. Although IPPs became wealthy, the CEB suffered heavy losses, according to its annual reports. The reason for the loss was the CEB purchased a unit of electricity at a high price to distribute it to customers at a subsidised price, the unions claimed.
On June 8, a number of CEB trade unions, including the CEBEU, warned of a strike since midnight and said it would lead to a countrywide blackout. They demanded the repeal of Section 43 of the new Electricity Act.
“Nevertheless, the President gave us a promise on the night of June 8 that arrangements will be made to include our amendments during the committee stage. So, believing him, we decided to suspend the strike. However, the President was unable to fulfil his promise. A hidden hand came into action. Going above and beyond the President, the Prime Minister and Minister Kanchana Wijesekera misled the entire country and got the Act passed although it was most unfavourable to the country. We fight for the people,” CEBEU Executive Committee Member Athula Wanniarachchi told the Sunday Times.
Areas such as Colombo, Kandy, Ratmalana, Moratuwa and Kegalle experienced blackouts for several hours from 4 am on June 9 due to workers leaving the Upcountry Hydro Power Plant from June 8 midnight.
On the night of June 8 the President issued a special gazette notification declaring the electricity supplies as an essential service. This meant that anyone who did not report for work would face action including vacation of post.
The Public Utilities Commission of Sri Lanka (PUCSL) alleged that the blackout was similar to a terrorist act. CEB Chairman M.C Ferdinando filed a complaint in the Colombo District Court on Thursday over the incident.
The Sunday Times learns that the President had informed Parliamentarians Mahindananda Aluthgamage and Minister Ramesh Pathirana to prevent the draft bill from being tabled in Parliament on Thursday. Mr. Aluthgamage requested the Subject Minister not to present the Bill in Parliament on that day but he had refused to do so and under these circumstances, Mr. Aluthgamage left Parliament without voting for the draft bill.
When asked about the matter, Mr. Aluthgamage said he had a different opinion regarding the new electricity amendments. “We tried to prevent this. But in the end, I told the President why I left the House,” he said, adding that he would not comment on the Government’s own actions.
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