Govt. initiates power sector reforms with cabinet approval

The government has taken the initial step towards implementing power sector reforms to restructure Ceylon Electricity Board (CEB) with the aim of supplying electricity at affordable prices.

Minister of Power and Energy Kanchana Wijesekera announced that Cabinet approval was granted yesterday (Monday) to the recommendations proposed by the Committee on Restructuring the Ceylon Electricity Board (CEB) appointed on August 5.  

The 8-member committee has submitted its report a couple of months ago making recommendations on the restructuring of CEB and improving power generation as well as its cash flow.  

Under these recommendations, the Electricity Reforms Bill will be drafted within a month to begin the unbundling process of the CEB while taking measures as soon as possible to enact it in parliament. .

Successive governments had tried to introduce power sector reforms following recommendations of international agencies the World Bank (WB), ADB and JICA after conducting comprehensive feasibility studies spending millions of dollars from time to time during the past two decades.

As a last ditch attempt , the Energy Ministry has been directed by President Ranil Wickremesinghe to expedite the restructuring process of unbundling the CEB by setting up of  state-owned companies jointly with the private sector management to take over the generation, transmission, distribution and other functions.

There will be one joint venture each for generation and transmission and three or more for distribution, according to the CEB cabinet memorandum.

It has also been proposed to form separate power generation joint venture companies to undertake functions of the CEB relating to hydropower, thermal electricity, coal power and non-renewable power generation, distribution, and other activities as well as the Lanka Electricity Company (LECO).

These companies will serve as independent power producers (IPP) and will have to sell the energy they generate to the transmission company, along with other IPPs. (Bandula)