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Draft Bill for superpower committee under Premier for energy sector
A new draft Bill seeks to confer wide-ranging powers on a committee of officials under Prime Minister (PM) Ranil Wickremesinghe, to take sweeping decisions on the country’s energy sector.
The Energy Supply (Temporary Provisions) Draft Bill, a copy of which was seen by the Sunday Times, would establish a 13-member “Energy Supply Committee” (ESC) of Govt. officials, subject to the directions of the Minister of National Policies and Economic Affairs. The portfolio is currently held by PM Ranil Wickremesinghe, who is due to present the draft Bill to Cabinet on Tuesday (4).
Secretaries to the Ministries of National Policies and Economic Affairs, Finance, Power and Renewable Energy, Development Strategies and International Trade, Petroleum Resources Development and Chairpersons of the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC) are among those who would be members of the new committee.
The ESC would have two main objectives: One is to guarantee the generation, transmission and distribution of electrical energy, petroleum and other alternative energy during the next decade to meet national demand. The other is to regulate the provision of electrical energy, petroleum supply and utilisation of other energy resources.
Towards this end, the ESC would be authorised to take all necessary measures regarding the generation, transmission and distribution of electrical energy, petroleum and other alternative energy sources; deal in any manner with all forms of renewable energy sources; purchase or, otherwise deal with ancillary equipment such as electricity meters and prepare schemes for the purchase of such equipment by the private sector; ensure the cost effectiveness of all aspects of the operations of the CPC and the CEB; conserve energy and promote other energy resources; and take such measures as may be necessary to ensure compliance with the provisions of this Act.
The draft Bill also confers powers on the ESC to supervise and issue directives to the Public Utilities Commission of Sri Lanka (PUCSL) or, any other authority that may be designated under the PUCSL Act, to control the generation, transmission, distribution, supply and use of electricity. The PUCSL currently functions as the country’s electricity sector regulator. The ESC would also have powers to supervise and issue directives to the CPC or, such other authority that may be designated by law, to control the importation, exportation, storage, distribution and supply of petroleum and petroleum products.
The ESC will exercise its powers subject to the directions of the Minister of National Policies and Economic Affairs.
Section 7 of the draft Bill notes: “Notwithstanding anything to the contrary in any other Law, it shall be the duty of the PUCSL and the CPC, as the case may be, to implement the plans and programmes drawn up by the ESC, for the purpose of attainment of the objectives of the ESC.”
Minister of Petroleum Resources Development, Chandima Weerakkody told the Sunday Times, his Ministry as well as the Ministry of Power and Renewable Energy, which will be directly affected by the proposed Bill, have been asked to study it and submit their observations to Cabinet. Regarding the extensive powers to be granted to the ESC, under the Bill, the Minister stressed that both Ministries had exercised their duties responsibly. “We are taking measures to amend the CPC Act. I believe, any issues that may exist (in the petroleum sector) will be resolved once that is done. However, we will make our observations on the draft Bill known to Cabinet.”
Deputy Minister of Power and Renewable Energy, Ajith P. Perera described the draft Bill as “very complicated.”
“We are still drafting our observations and will submit them to Cabinet soon,” he stressed.
Meanwhile, the CEB Engineers’ Union (CEBEU) is voicing strong opposition to the Bill. In a letter to President Maithripala Sirisena, the Union describes the ESC as “equal to a committee having super powers” with authority over regulatory mechanisms already in place.