Public and private partnership essential to move forward energy sector - SAREC
 

by Chamikara Weerasinghe

South Asia Regional Energy Coalition (SAREC) yesterday made the observation that if Sri Lanka did not restructure its power sector to involve private sector investment in it, the industry can fall into an acute financial crisis and burden the public with increased electricity tariffs while also having to face an energy crisis.

Speaking on the private sector's perspective and position on electricity reforms at a press conference held at the World Trade Centre in Colombo, the board of directors of South Asia Regional Energy Coalition (SAREC) also noted that it will be essential for Sri Lanka to have electricity reforms that will open "public and private partnership' to move forward its power sector.

Speaking on the present situation of the Ceylon Electricity Board with its 14,000 employees against any move of privatisation, SAREC Chairman and Director for India, V. Raghuraman said that Sri Lanka was now in a situation where India was sometime ago.

" This is a period of transition. You cannot go by imposing taxes on electricity bills all the way as at present. You will need to ensure that consumers are benefitted in the process by bringing in the right kind of investment. What counts here is that the CEB rises from its present bankruptcy to bankability," said Raghuraman.

"You have to bring the players and make them responsible for the task. The governments these days cannot fund the power sector alone because it will have to focus its funding to other sectors such as the public health, education and social welfare sectors," he said.

"The process of reform should continue in order to meet the energy demands ahead for the country. Whether employees of the CEB like it or not , people are going to demand for more electricity," he pointed out. " Bringing in the private sector means you make them responsible for their task," he said. When electricity reforms took place in India people did not launch any strikes because they knew the benefits,he added.

SAREC's Director for Sri Lanka, Nimal S.Cooke said that way things were going the CEB had to close down.

" The public suffer its consequences having to pay higher electricity bills. The situation is such that Sri Lankan public pay the highest electricity charges already and signs are such that it will further escalate in due course," said Cooke.

" The majority of people silently suffer this," he said and requested the public to urge the government to resolve the crisis by taking appropriate steps to control the situation. " We are not for a private sector monopoly in the matter of bringing private sector to the country for power sector as much as we are not for a public sector monopoly," he said "

SAREC directors also pointed out that Sri Lanka can learn from the countries in the region, Nepal, Bhutan, Bangladesh and India how they have benefitted after opening its power and energy sectors for private investments.

SAREC Nepal Director Sandip Shah, Sri Lankan Director Lalith Gunaratne, Bangladesh Director Aftab ul Islam also spoke on this occasion.