News
CEB’s demise just one step away; tariff policy the hurdle
View(s):By Namini Wijedasa
Four out of five steps needed for the dissolution of the Ceylon Electricity Board (CEB) have now been fulfilled, but the last requirement—obtaining Cabinet approval for the national electricity policy and national electricity tariff policy—is yet to be completed, the Sunday Times learns.
This stipulation is likely to be met in mid-February after the policy drafts go through a public consultation, said Pubudu Niroshan Hedigallage, the head of the CEB Transition Task Force.Thereafter, the “appointed date”—when the CEB ceases to exist as a statutory corporation in law—will be gazetted.
The preliminary transfer plan, the annual power procurement plan, the long-term generation expansion plan, and the long-term transmission development plan have so far been completed. Along with the national electricity policy and the national electricity tariff policy, these are mandatory steps before the minister can appoint the date by gazette notification.
The four successor companies are the National System Operator (Pvt) Ltd (NSO), responsible for system operations, planning and coordination across the grid; the National Transmission Network Service Provider (Pvt) Ltd, which will manage the national high-voltage transmission network; Electricity Distribution Lanka (Pvt) Ltd, which will handle distribution of electricity to consumers; and Electricity Generation Lanka (Pvt) Ltd, which is responsible for electricity generation assets and operations.
The opening balance sheets for each entity have been established, and the final assignments of employees finalised, according to Mr Hedigallage. Assets have been allocated to the different companies, and “almost all” preliminary asset valuation is done.
However, power purchase agreements (PPAs)—which govern the terms under which the NSO will buy electricity from generation companies, including private power producers—are not ready and could take as long as four to five months after the gazetting of the appointed date, senior CEB sources said. The same applies to power supply agreements (PSAs) and transmission supply agreements (TSAs).
Mr Hedigallage maintained that the drafts are available and that they will be signed within three months of the appointed date. Until then, there will be an “interim cashflow agreement” (ICA) to govern transactions, he said, adding that it will be signed before the appointed date.
“The ICA will be valid till PPAs, PSAs and TSAs are ready, maximum till the final transfer plan gazetting date,” he said.
But while the Public Utilities Commission of Sri Lanka (PUCSL) must approve such a plan before it is implemented, the ICA has not yet been sent to the regulator for approval, the CEB sources said.
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