Sri Lankans served with untruths to deprive them of cheaper electricity – senior energy expert

By Ifham Nizam

All possible untruths have been uttered to deprive Sri Lanka of cheaper electricity in the proposed power sector reforms, senior energy expert Dr. Tilak Siyambalapitiya warned recently.

Speaking at a forum titled, “Reforms for a Sustainable Power Sector for the Next Generation,” on December 21 at Hotel Galadari, Dr. Siyambalapitiya stressed that the proposed Act does not promote competition, for renewables and stranded renewables, for example, to ultimately help the customer in the form of a price drop.

Siyambalapitiya said that bidding for renewables will not work. Speaking on the topic, “Will the Draft Solve the Problems in the Sector,” he also said Sri Lankan investors have no money to invest; “hence, foreign investors have to come; wind and solar energy must be paid for in US dollars.”

Institute of Engineers of Sri Lanka committee member appointed to oversee ‘Power Sector Reform Studies’, Pubudu Niroshan, told The Island Financial Review that following the successful completion of the forum, “Reforms for a Sustainable Power Sector for the Next Generation,” the Electrical Engineering Society of the University of Moratuwa (EESoc) submitted its recommendations to the Minister of Power and Energy and Power Sector Reforms Secretariat.

Niroshan added: ‘The forum garnered unanimous agreement on the necessity for power sector reforms.

‘However, participants emphasized the importance of genuine consultation and stakeholder engagement. In this regard, the revision of the gazette Act was identified as crucial to address; *key omissions and unnecessary additions*, ensuring its effectiveness in achieving lasting positive outcomes.

‘Any reform or change should be done with an objective and built on a model featuring our strengths and opportunities; not for weaknesses and threats, not for interests of individuals.

‘The process of reform should be transparent and with genuine consultation of stakeholders and absorption of their valued inputs.

‘If the proposed model is towards a Competitive Generation Market, Wholesale Market and the Retail Market; the key elements are the (i) Independent System Operator (ii) Competitive Power Generation and (iii) Strong backbone of Transmission Network.”

‘However, with the proposed draft, the proposed system operator is not independent; it will be fully dependent and controlled by the minister; minister will get arbitrary/ veto power on planning, procurement, tariff and all electrical sector decisions.

‘Though sections of the Act mention competitiveness, the proposed separation of the CEB into companies will make monopolies in coal, LNG (Future) power generation and also in energy storage systems.

‘Privatizing CEB transmission assets up to 50%, then allowing separate private owned transmission lines and substations in strategic locations will make our power network weak.

‘Establishing multiple standalone companies with government ownership can result in loss of control and governance in the electricity sector. It is recommended to establish a government owned public company holding the shares currently held by GoSL in generation, transmission, distribution, and other electricity sector companies as a strong parent company.

‘The Proposed National Electricity Advisory Council is an Appendix. It is of no relevance in the proposed structural change in the electricity sector model either technically or financially or economically. It is just another body created to get the powers into the hand of minister/ government to control the sector. It is a reverse of reforms.

‘If the requirement for a ‘National Electricity Advisory Council’ is justified with a national objective, including preparation of national electricity policy, issue of policy guidelines, review of the long-term power system development plan and the tariff policy, then, it should be an independent council established by obtaining the observations of the Constitutional Council for nomination by the minister/ President.

‘Most importantly, limit the advisory council to advise minister/ President/ Gov., but not the regulator or system operator. This can be separately established out of this New Electricity Act. ‘

The mentioned forum was co-hosted by EESoc and IEEE PES Sri Lanka Chapter with academics of the Universities of Moratuwa and Peradeniya. It brought together diverse stakeholders from the legislative, academic and industrial sectors to engage in constructive dialogue on the crucial topic of power sector reforms.

Panelists comprised Eng. Nihal Wickramasuriya, Retired General Manager, CEB and Reforms Manager (2002-2006), Prof. Asanka Rodrigo, Professor in Electrical Engineering, University of Moratuwa, Prof. Lilantha Samaranayake, Head of the Department of Electrical and Electronic Engineering, University of Peradeniya, Dr. Tilak Siyambalapitiya, Managing Director, Resource Management Associates (Pvt) Ltd and Eng. Pubudu Niroshan, Co-Founder Minel Lanka and Director of Nexgen Lanka (Guarantee) Limited.