PUCSL says will not allow unfavourable PPAs with private sector developers

10 June 2022 09:49 am Views - 132

• Says won’t allow CEB to enter into any power purchase agreement violating least cost principle 
• According to CEB Engineers’ Union India’s Adani Group is seeking twice the standard price in US dollar terms for its proposed 2 projects
• PUCSL says won’t allow such high rates in US$ terms to Adani or any other party
• Says PUCSL has resisted proposals for emergency power purchase from Cabinet of Ministers for last five months due to higher rates

By Nishel Fernando
Sri Lanka’s power sector regulator, the Public Utilities Commission of Sri Lanka (PUCSL) stressed that it would not allow the Ceylon Electricity Board (CEB) to enter into power purchase agreements (PPAs) with the private sector developers, including India’s Adani Group, violating the least cost principle.

“We are the ultimate authority in approving electricity tariffs in power purchase agreements. Therefore, the public do not need to heed into unnecessary fears of CEB entering into such unfavourable electricity tariffs with the private sector. We will not allow it,”PUCSL Chairman Janaka Ratnayake told reporters in Colombo yesterday.

According to Ceylon Electricity Board Engineers’ Union (CEBEU), India’s Adani Group is seeking an indicative price of around US$ 0.775 for a kilowatt hour (unit) through an unsolicited proposal for 500MW renewable power generation projects in Mannar and Pooneryn, which is twice the standard price.

Ratnayake noted that PUCSL wouldn’t allow the CEB to pay such high rates in US dollars to Adani or any other party, in particular for indigenous renewable power generation.
He pointed out that the PUCSL has resisted over Rs.500 billion worth emergency power purchase requests from the Cabinet of Ministers over the last five months, after considering the high tariff rates.

Commenting on the proposed amendments to the Electricity Act, Ratnayake remarked that CEBEU had more than sufficient time to challenge the proposed amendments in courts as they were gazetted in mid-April. 

Therefore, he viewed that CEBEU’s trade union action, which was ultimately called off, as a futile attempt to showcase their strength instead of initiating meaningful action. 

The PUCSL announced that it would investigate yesterday’s power disruptions reported in 10 locations and would take necessary action if it was sabotage. 
Further, PUCSL also plans to issue an enforcement order to CEB General Manager to avoid such power disruptions in the future.