Sri Lanka to pay lower charges if expired power plants are renewed

Apr 24, 2013 (LBO) – Sri Lanka’s state-run Ceylon Electricity Board has been given guidelines to negotiate much lower rates if expired contracts of power plants are extended, a top official said. “The CEB had been given strict guidelines to negotiate much lower charges if they are needed,” power ministry secretary M M C Ferdinando said at the sidelines of a meeting of media heads with Sri Lanka’s president.

“Their capacity charges should be 75 percent less than the previous level or less. They have paid back all their loans.”

The power purchase contracts of ACE Power Matara, ACE Power Horana and Lakdhanavi had expired.

The plants ran into controversy when they were scheduled for dispatch by CEB in costs filed for 2013 apparently on the same terms as earlier.

Sri Lanka’s Public Utilities Commission, the regulator struck them down and asked the utility to generate up to 800 GigaWatt hours of scheduled energy from hydro instead.

A top energy sector expert called both moves ‘irresponsible’.

The three plants acquired through competitive bidding were among the cheapest thermal plants in the Ceylon Electricity Board system.

At a recent public hearing power consumers a