Sri Lanka incurs Rs. 50.6Bn loss due to delay in implementing planned power plants: PUCSL

power

Nov 20, 2017 (LBO) – The Public Utilities Commission of Sri Lanka (PUCSL) says that it has estimated a financial loss of 50.6 billion rupees due to the delay in implementing planned power plants.

“The total expected financial loss due to implementation delays of the 2018-2020 plant schedule in the long-term generation expansion plan is Rs. 50.62 billion. The financial loss due to any further delay beyond what is foretasted in the previous section will cost Rs. 3.43 billion for each month,” it said.

The Commission does not recommend purchasing emergency power in the future to meet any capacity or energy deficit due to implementation delays of these upcoming power plants and is of the view that such costs should not be passed through to the consumers through tariffs.

Instead it says to expedite the procurement of the listed power plants in accordance with an approved schedule as a matter of national importance.

“The cumulative effect of implementation delays over the next three-year period can very likely trigger a power crisis that can seriously affect the national economy,”

“The Government may consider a change in industry structure if the generation plan implementation cannot be efficiently carried out within the current structure.”

PUCSL has been continuously monitoring the progress of the CEB in implementing the approved plan and has observed delays in the procurement process of power plants expected to be commissioned by 2020.

Based on the information obtained from CEB, the Commission expects delays in implementation of the power plants that had been approved to be implemented by 2020.