The Public Utilities Commission of Sri Lanka (PUCSL) has become a pawn of lobby groups, Power and Renewable Energy State Minister Ajith P. Perera alleged while steadfastly defending the decision to extend the power purchase agreement with Ace Power Embilipitiya Ltd. The State Minister’s remarks came in the wake of the PUCSL refusing to approve three Power Purchase Agreements (PPAs) including that of Ace Power.
Responding to a question by a journalist at the end of the press conference at the Sirikotha UNP Headquarters yesterday, the State Minister noted that ACE Embilipitiya supplies power at the lowest rate, adding that due Cabinet approval has been granted to extend the Power Purchase Agreement.
“The PUCSL is not practical in this matter. It has become a pawn of interested parties in the power sector which is no doubt a multi-billion dollar business in the country. Unlike the CEB and the Ministry, the PUCSL is not answerable to anybody. We consulted the opinions of energy experts and specialists and they were in agreement that purchasing power from retired thermal power plants was the best option for the Government.”
Sate Minister Perera said the power purchase rates with the Independent Power Producers have been brought down through fresh negotiations carried out by a high level committee comprising ministry secretaries. He said it was the recommendation of the Technical Evaluation Committee to go ahead with purchasing power from ACE Power Embilipitiya and Matara as a short term solution for the looming power crisis.
The State Minister said the CEB has signed Letters of Intent to have joint venture projects with India (500 MW), Japan (500 MW) and China (400 MW) to construct new LNG power plants.
He said the proposed coal powered plant in Sampur had to be cancelled as the President disagreed with it.