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Power crisis and CEB reforms: CEB Chairman blames Power Ministry

13 Feb 2022

BY Asiri Fernando
  • Acknowledges Treasury critique cannot be refuted
  • Alleges recommendations on renewable energy ignored
  • Power Secretary says things take reasonable time
  • Breakdown of power plants may trigger power cuts: PUCSL
Efforts undertaken to reform the Ceylon Electricity Board (CEB) have been unsuccessful, mainly due to poor support extended by the Ministry of Power, CEB Chairman M.M.C. Ferdinando charged last week, in the backdrop of the Public Utilities Commission of Sri Lanka (PUCSL) yesterday (12) announcing possible power cuts due to breakdowns at two thermal power plants. While the CEB and Power Ministry lock horns, Sri Lankans are once again faced with the grim prospect of power cuts. Hydropower reserves dropped below the critical 50% last week and the West Coast Power Plant at Kerawalapitiya and the Sojitz Power Plant were forced to shut down due to technical issues last evening (12). In a reply to an email sent by the Secretary to the Ministry of Power, the CEB Chairman last week acknowledged that the content of a hard-hitting communique from the Finance Ministry dated 5 February “cannot be refuted in principle or in spirit”. The Sunday Morning last week reported on the ongoing power crisis, which Ferdinando termed as “man-made”. The CEB Chairman refuted the allegation by Treasury Secretary S.R. Attygalle that only 15 MW of renewable energy had been added to the national grid in the last 24 months, following the introduction of the national policy to reach a target of 70% of total power generation through renewable power by 2030. According to him, 80 MW of rooftop solar power had been added in 2020 with another 100 MW in 2021. Ferdinando alleges that the recommendations made by him to streamline the renewable energy adaptation process through an “empowered umbrella organisation” made up of a number of key stakeholders was neither forwarded for necessary action nor taken up for serious discussion. Ferdinando had sought to make the renewable energy target a “national drive,” which would come under the purview of a specialised task force led by a Cabinet minister and in line with the Sustainable Energy Authority (SEA) as the regulator and the CEB as the power utility. He also expressed displeasure that recommendations made for the post of CEB general manager were not supported. Addressing concerns about the massive debt owed by the CEB, Ferdinando stated: “However, the reality is that the CEB does owe the banks, the Ceylon Petroleum Corporation (CPC), and other entities in excess of Rs. 150 billion.” Ferdinando highlighted policy inconsistency and failed attempts to improve the generation capacity of the CEB as two reasons for the power generation crisis. “...Not a single power plant has been completed (Sampur two coal power plants of 500 MW and 600 MW each) of which 500 MW plant was ready (having completed signing of all agreement including PPA and IA) for commencement of construction phase by 2014 (while the feasibility study for 600 MW plant with JICA funding was ongoing since 2014 with the aim of commencement of the construction by 2017) was unreasonably delayed till 2015 and ended up with the cancelation of both two projects in 2015 by the then Government, Uma Oya Hydro Project of 120 MW commenced construction in 2009 and expected to be completed by 2016, Broadland Hydro Project of 35 MW commenced construction in 2011/2012 and is expected to be completed in 2016, Mannar Wind Power Project of 100 MW (commenced in 2014 completed only in 2020/2021), Moragolla 40 MW was to be commenced in 2015 with ADB funding, but awarded the contract in 2020, Sobadanavi LNG Plant was to be commenced in 2017 (tenders invited on 16 November 2016) but delayed till second quarter of 2023 (Norochcholai Coal Power Plant of 300 MW as stage IV was to be commenced the construction pursuant to the Government decision in February 2020 but ended up with no result in July 2021) or added to the system including the conversion of thermal plants into LNG which, had it been fast tracked could have addressed many of the issues plaguing the CEB today,” he explained in the response referenced above, dated 8 February. “The Chairman has taken some steps to move the organisation (CEB) towards being a more successful one. He is a capable person. However, the Minister and the Ministry, myself included, have to consider the legal background, the industrial peace, and the entire environment when granting approval to such requests,” Ministry of Power Secretary Wasantha Perera said when reached on the allegations made by Ferdinando. Perera said the Ministry had to be mindful of the legality when approving certain appointments within the CEB, adding: “I believe that the decisions taken by the Minister are accurate.” “We have to abide by the laws and follow procedure; it is not that we are not cooperating with him, we appreciate his effort. We have given the fullest support possible. The decision is at the discretion of the Minister,” Perera claimed.  However, Perera said that the Ministry was moving ahead with some of the requests made for legal amendments with the consultation of the Attorney General’s Department. “Things are happening, but everything takes its reasonable time,” Perera said, adding that all stakeholders should work together to reach energy security and the renewable energy targets set in policy.   


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