• Instead of using 2024 Act’s provisions on purchasing electricity and renewable energy projects, Cabinet sub-committee. appointed  

The Electricity Consumers’ Association (ECA) claimed that despite the existence of the Electricity Act, No. 36 of 2024, which contains provisions on purchasing electricity and renewable energy projects, the Government has appointed a Cabinet sub-committee to review and make recommendations on selected renewable energy projects.

Speaking to The Daily Morning, ECA General Secretary Sanjeewa Dhammika said that there is no point in having the said Act if Cabinet sub-committees consisting of Ministers are deciding what should and should not be done in the energy sector. He added that the Government may change in a few years, but, the consequences of such decisions would have to be borne by the people for a long time.

“Purchasing electricity is a highly complex process. It is clearly detailed in the said Act and is also subject to the oversight of the Public Utilities Commission of Sri Lanka. This is a technical matter. Do Ministers have the necessary expertise to decide what should or should not be done? A Cabinet sub-committee can be appointed only in an emergency situation, such as the economic crisis in 2021. There is no reasonable ground for the Government to appoint such a committee now,” he claimed.

Dhammika also said that although the President’s recent Budget speech stated that a unit of electricity generated from wind power would be purchased at a competitive rate of Rs. 11, a Cabinet paper approved in August of this year (2025) had set the rate at Rs. 20.30 per unit for one of the said renewable energy projects. He added that the Cabinet paper also includes a clause allowing the project company to negotiate for a higher rate if it is not satisfied with the approved price.

“The President has many responsibilities and relies on information provided by Ministry officials. They tell him a fairy tale, but they tell the people a devil’s tale. When he says that electricity generated from wind power will be purchased at Rs. 11 per unit, the Cabinet has already approved a proposal to pay Rs. 20.30 per unit for one project. The Government is also preparing to bear the transmission cost of these projects. Once they pay that rate to one company, other investors will also demand the same price,” he claimed further.

Attempts to contact Energy Ministry Secretary Prof. Udayanga Hemapala regarding the allegations proved futile.