Implementation of power generation plans PUCSL Employees Union denies allegations

The Employees Union of Public Utilities Commission of Sri Lanka said yesterday denied the allegation made by certain parties that the Public Utilities Commission of Sri Lanka has delayed the implementation of power generation plans is a baseless and completely false statement.

Issuing a statement, the Union said, According to the Sri Lanka Electricity Act, the Commission is responsible for approving power generation plans and approving the calling for proposals to build power plants (Request for Proposals) and Power Purchasing Agreements. Accordingly, the Commission has given its fullest cooperation and approval to the Ceylon Electricity Board for implementing the Least Cost Long Term Generation Plans.
The Ceylon Electricity Board has sought the approval from the Public Utilities Commission of Sri Lanka for three major power plants with the capacity of 300 MW during the period 2016-2020 under the Least Cost Long Term Generation Plan and the steps taken by the Commission in this regard are as follows;
01. The first liquefied natural gas (LNG) power plant of 300 MW
 The Ceylon Electricity Board submitted the request for proposal (RFP) of the above plant for the approval of the Commission on 15.11.2016 and the approval was granted by the Commission on 17.11.2016 within two days. However, after a delay of four (04) years of the bidding process, the Power Purchasing Agreement (PPA) has been referred to the Commission for approval on 09.10.2020. The Public Utilities Commission of Sri Lanka gave the approval on 25.11.2020 in the first meeting that was convened after submitting the PPA.
 02. 300 MW Second Liquefied Natural Gas (LNG) Power Plant

 Although the Board of Directors of the Ceylon Electricity Board had decided on 29.06.2017 to call for bids for the construction of the above-mentioned power plant which has been delayed for more than three years and which was approved by the Public Utilities Commission of Sri Lanka under the Long-Term Generation Expansion Plan, the request for proposal (RFP) was submitted to the Commission on 18.09.2020. Accordingly, the Commission has given its approval within one month on 22.10.2020 and yet the Ceylon Electricity Board has not called for bids for the plant.
 In both cases mentioned in No 1 and No 2, the approvals were granted after the Ceylon Electricity Board (CEB) agreed to incorporate the necessary amendments proposed by the Commission for the benefit of the country and the public.

 03. Norochcholai Coal Power Plant Extension of 300 MW

 According to the long-term power generation plan 2018-2037 approved by the Commission, if a 300 MW coal power plant is to be completed by 31/12/22, the approval of the Commission should be obtained by the middle of the year 2018.

However, after a delay of two years, the relevant tender has been submitted on 04.09.2020 to award the construction of this power plant to one party in a non-competitive manner.