Sri Lanka's Energy Sector to get a new law?

COLOMBO (News 1st);  The Sri Lankan government is preparing to introduce a new legislation that would establish independent corporate entities responsible for activities related to electricity generation, transmission, distribution, trade, supply, and procurement, already performed by the Ceylon Electricity Board. 

The draft bill received the green light from the cabinet recently, and it will be presented to parliament in the near future. 

What does the new Electricity Sector Reforms Bill aim to introduce?

The bill aims to establish independent corporate entities responsible for activities related to electricity generation, transmission, distribution, trade, supply, and procurement, already performed by the Ceylon Electricity Board.

Entities will be set up in a manner in which they can be registered under the Companies Act.

This move is to be done with the aim of attracting new investments and creating market competition.

It also proposes for the establishment of a National Electricity Advisory Council, while the Public Utilities Commission of Sri Lanka will serve as the regulator of the electricity sector. 

The bill also proposes for the implementation of timely, legal, structural, oversight, and market-based changes to ensure the financial self-sufficiency of the corporate entities.

This includes the adoption of cost-reflective and transparent tariff system, improved financial and resource management, and enhanced accountability and oversight measures.

It also proposes the promotion of private sector investment in the electricity industry through stock market listing, and public-private partnership modalities.

It also places emphasis on the government's commitment to decarbonization goals, climate change policies, and the use of renewable energy sources.