The Power and Energy Ministry has informed the Board of Investments (BOI) that the Ceylon Electricity Board (CEB) will not procure power through unsolicited tender procedures.
“The Board of Investments and other institutions bring proposals on power project investors. Even though these projects had received the BOI approval, the CEB by law, cannot accept these power projects,” Power and Energy Ministry Secretary Dr. B.M.S. Batagoda said, adding that it would be in violation of the Sri Lanka Electricity Act.
“There has been a round of meetings in this regard and we have made our position clear to the relevant parties,” he explained. Dr. Batagoda also said, the Ceylon Electricity Board (CEB) has to abide by the existing law, which is to procure power through competitive bidding only. He also said the CEB will always have to consider the least cost option when purchasing power, for the benefit of the public.
Speaking to the Daily News, Dr. Batagoda said, the CEB has to follow the Sri Lanka Electricity Act when it comes to purchasing power from the private sector.
“Mainly, according to the Electricity Act, the CEB cannot procure electricity from power projects or any such thing without a competitive tender procedure,” Dr. Batagoda said.
“Secondly, any power project has to be included in the long-term generation plan. This 20-year plan has to be updated every two years. In the 20-year plan, we must identify which are least cost generation plans,” he explained.
“We have to consider what power projects have the lowest cost and subsequently be beneficial to the country. This long term generation plan then has to be approved by the Board of CEB, then the Power and Energy Ministry and finally by the Public Utility Commission,” Dr. Batagoda further explained.
He also pointed out that the CEB now gets the approval from the Committee on Economic Management headed by Prime Minister Ranil Wickremesinghe for the long term plan as well, before sending it to the Public Utility Commission.
The CEB can procure from the private sector power providers who are included in this long term plan only, Dr. Batagoda also pointed out.
“The CEB cannot procure from or issue tender for any power project which is not included in the long-term plan by law,” he added.
The only exception will be if a certain power project is given by a foreign government to the government of Sri Lanka, Dr. Batagoda said.