No more Government owned power plants in the future

COLOMBO (News1st) - The Minister of Power and Renewable Energy says the Government has decided not to construct any large scale power-plants by themselves in the future. State Minister of Power and Renewable Energy Ajith P Perera stated that they will construct power plants with government investments, but will not construct the plants to be owned by the government.He added that this is not a new policy. Perera stated that the last power plant that the Government will construct will be the 100MW wind power plant in Mannar, afterward government funds will not be allocated to construct any more power plants. The State Minister added that the power plants that are constructed in the future will be partnerships between the CEB and the private sector.He said they will provide the opportunity to the private sector through a tender process, and will purchase the power at the least cost. Though the Minister says cronyism will not be allowed, News 1st time and time again with documentation proved this takes place. What is most amusing is that the CEB had re-entered into an agreement to purchase electricity from the ACE Power plant in Embilipitiya at a cost of Rs. 5.4 Billion at a time when the entire power plant could have been brought around half of the cost.

Is this not cronyism?

The CEB has to make an annual payment of Rs. 50 Million to the Public Utilities Commission of Sri Lanka as a regulatory fee, however questions have been raised as to why a letter was issued stating that they will only make these payments if the Director General of the PUCSL is removed. The primary responsibility of the Chief of the PUCSL is to ensure that the consumer's rights are protected, there are many who question whether attempts are being made to remove him as he is an obstacle blocking the path to more cronyism. Are these individuals attempting to generate undue profits from their associated private companies under the guise of meeting the national energy requirement by putting a stop to the construction of large power plants in the future? Or is it to further strengthen the electricity mafia in the country? For your attention...