No approval for 200MW barge: PUCSL

• CEB hasn’t requested for approval, PUCSL informs Cabinet
• Says even under emergency conditions CEB has to get approval on procurement agreement
• Says PUCSL cannot comment on requirement as CEB has withheld data
• CEB Engineers’ Union mulling over continuing action or calling for proper procurement procedure requiring PUCSL approval

By Chathuri Dissanayake

The Public Utilities Commission of Sri Lanka (PUCSL) has informed the Cabinet that Ceylon Electricity Board (CEB) has not sought approval to purchase the 200MW barge mounted power plant.

The Regulator has also informed the Secretary to the Cabinet of Ministers that the Transmission licensee, the CEB, has to seek approval of the PUCSL prior to signing the agreement even if the procurement was under emergency regulations.

PUCSL, in a letter responding the Cabinet office informing of approval given to the paper submitted, titled ‘Procurement of power from 200MW of Barge Mounted Power ship at Kerawalapitiya for six months period on short-term basis in order to ensure continuous power supply to the country on an emergency basis’, seen by Daily FT, stated that the CEB has not requested approval to sign any procurement agreement related to the purchase mentioned.

In the Cabinet paper submitted for approval on 30 April, Power, Energy and Business Development Minister Ravi Karunanayake has sought approval to sign a procurement agreement with the developer of the barge mounted power under Section 43 4 (c) (ii) of the Sri Lanka Electricity (Amendment) Act of No. 31 of 2013, under emergency situation. The Cabinet, during an earlier meeting, declared a State of Emergency for the power sector as per articles in the Sri Lanka Electricity Amendment Act. However, the PUCSL, in the letter to the Cabinet, has said if the tender process is not followed under State of Emergency conditions, the procurement should be limited only on short-term basis. Further, PUCSL also states that under both sections 43 (2) and 43 4 (c) of the Act, the licensee, CEB, is required to obtain prior approval from the Commission for any power plant. “So far, the transmission licensee has not requested such approval from the Commission,” the PUCSL has informed the Cabinet.

Further, the Commission also highlights that it is not possible to by-pass obtaining the approval of the Commission, as according to them, even under section 43 6 of the Act, the licensee is expected to negotiate with the developer and forward recommendations and draft of the power purchase agreement for approval.

The PUCSL has also noted that the Commission is unable to have a realistic estimate of the current actual plant requirement as it has not received data from the CEB since May 2018. The CEB Engineers’ Union has stopped submitting data as part of their trade union action against the PUCSL. Early this month, the CEBEU was asked by a member if they were withdrawing TU action with PUCSL “for this procurement considering possible power cuts to the country,” or is the union “accepting a [sic] procurement carried out without a proper competitive tendering procedure”. The CEBU has not withdrawn the trade union action to date.

The Cabinet paper also seeks approval to grant permission to the developer to import heavy fuel oil (HFO). Accordingly, the paper instructs the Ministry of Highways and Road Development and Petroleum Resources Development to issue the licence to import HFO for the power ship for a six-month period. No other entity has been granted licence where the Ceylon Petroleum Corporation has maintained monopoly.