ECONOMYNEXT – Sri Lanka’s energy regulator has said it will look at an ‘alternative structure’ to the state-owned power utility in expanding power generation to prevent its delays in adding plants from damaging the economy.
The Public Utilities Commission of Sri Lanka (PUCSL) estimates the total expected financial loss due to implementation delays of the Ceylon Electricity Board’s 2018-2020 plant schedule in the long term generation expansion plan is Rs50.62 billion.
The financial loss due to any further delay beyond what is forecast will cost Rs3.43 billion for each month, it said in a statement on the financial impact of delay in implementation of power plants.
“The government may consider a change in industry structure if the generation plan implementation cannot be efficiently carried out within the current structure,” it said.
Asked to explain, the PUCSL said: “Procurement of generation plants on a timely basis is a responsibility of the transmission licensee, which is CEB.
“Delays in implementation of plants will have an adverse effect on the economy. Therefore, if this cannot be achieved within the existing structure, then we need to look into an alternative structure. Determination of the structure should be done by a specialist in that area.”
(COLOMBO, November 20, 2017)