Ministry of power prepares for emergency power purchases, CEB objects

By Niranjala Ariyawansha

The Ministry of Power and Energy has decided to purchase emergency power of 150MW from private diesel power plants claiming that it is for the purpose of avoiding power cuts during the first six months of next year, but the top management of the Ceylon Electricity Board (CEB) has strongly objected to it.

This decision had been made during a discussion held by Minister of Power and Energy Kanchana Wijesekera together with the ministry secretary and other few officials. 

According to this decision, Chairman of CEB Nalinda Ilangakone had informed the General Manager in writing on 25 October to initiate immediately the procurement process for 150MW of emergency power. 

On 01 November, at the meeting of the Board of Directors of the CEB, the General Manager Dr. Rohantha Abeysekera had submitted a Board Memo objecting to the decision made by the government to purchase emergency power of 150MW and apart from the Chairman all members of the Board of Directors had supported it.

The top management of the CEB has pointed out that a massive amount of Rs. 25 billion will have to be spent on purchasing this 150MW emergency power from private diesel power plants, for a period of six months. Diesel will cost Rs. 24 billion and even if electricity is produced or not the capacity charges to be paid will be Rs. 1.3 billion. 

Therefore, in the face of the severe economic crisis prevailing in the country, purchasing power from private diesel power plants is a massive waste of money and also the CEB does not own money to buy that power. This has been pointed out in the Board Memo submitted by the General Manager. 

It is also mentioned in the Board Memo that the solution to the problem is to increase the present power cut of two hours to three hours as necessary within the first six months of next year and curtail consumption of electricity. It states further that the consumers should be informed that consumption of electricity should be restricted during peak hours. 

It is mentioned further as a result of economic factors that even the generating capacity that has been installed has not been used due to reduced demand. Therefore, if adding more capacity, it must be considered by the board whether it is possible to go back to the policy in existence previously, “no power cut at any cost.”

It has been further emphasized in the memo that at present, a two-hour power cut is imposed island wide not only because of a shortage of installed generating capacity but to save money without using high priced diesel power plants. 

A senior official of the CEB to said that, usually the CEB presents a proposal for purchasing emergency power based on the drought that can prevail during the first few months of the year and as production of hydropower is limited. 

“However, this time the government has decided to purchase emergency power. We, who have technical know-how, are not proposing that emergency power be purchased. Therefore, we are aware of the fact that the government is preparing ahead of time for an election. Also, this necessitates a vast waste of public money for a beneficent business requirement. The government should realize that they cannot act on the general policy of the government, “no power cut at any cost” due to the severe economic crisis that prevails,” he said.