Connect with us

News

Electricity Consumers Association fumes over giving monopoly hold to NFE on supplying LNG

Published

on

By Ifham Nizam

The Electricity Consumers’ Association yesterday alleged that the US firm, New Fortress Energy, was gearing up to grab Sri Lanka’s natural gas reserves.

Association’s Secretary Sanjeewa Dhammika yesterday told journalists that the authorisation of an agreement for the supply of LNG without any legal background would not result in LNG price control and the American company would squeeze the country when opportunity came to sell gas at arbitrary prices.

Dhammika said that allowing a US company to monopolie the LNG supply iolated the rights of electricity consumers. Although the government claims that the monopoly would be limited to only five years, there is the danger of lasting indefinitely.

The Public Utilities Commission of Sri Lanka (PUCSL) has been empowered by the Electricity Act to ensure that electricity is supplied at the lowest possible price, and as a result, transactions that supply electricity at high prices are barred.

The Union pointed out that during the period of good governance, the illegal transaction of buying 600 MW of electricity from Turkish ships berthed at Sri Lankan harbours was avoided because the Public Utilities Commission had powers.

“But there is no agency with any legal powers to regulate LNG supply. In such a scenario, handing over the supply of LNG to a foreign monopoly would push the country’s energy sector into a major crisis,” he warned.

Dhammika said in a statement: More than 2000 MW of LNG power plants are to be constructed in the near future. Accordingly, nearly 50 percent of the installed capacity in the country will be supplied by these power plants. Giving a foreign monopoly the power to decide the fate of 50 percent of the country’s electricity supply will instead result in electricity being generated at the monopoly’s arbitrary prices. Also, as the existing power plants can be powered by diesel, the country will be further victimized by the diesel mafia by supplying diesel instead of LNG at the behest of the LNG company.

Accordingly, the loss to the CEB will be further increased by this illegal transaction. The diesel mafia in the guise of LNG will work to impose that burden on the consumer. Accordingly, laws should be enacted to regulate the supply of LNG and delegate regulatory powers to the Public Utilities Commission before handing over the supply of LNG to a foreign monopoly. Then suppliers should be selected to supply LNG on a transparent basis based on competitive tenders, added Dhammika.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

President outlines a bold vision for Sri Lanka tourism at THASL’s 58th AGM

Published

on

By

Addressing the 58th Annual General Meeting of The Hotels Association of Sri Lanka (THASL) held on Monday (27) at Shangri-La Hotel, Colombo, President Ranil Wickremesinghe outlined a comprehensive strategy to propel the country’s tourism sector to new heights. Focused on surpassing the target of 5 million tourists and redefining traditional approaches, the President’s vision extends to achieving 7.5 million visitors in the coming years. The President emphasized the need for innovative thinking and collaboration within the industry to ensure sustainable growth.

“When I took over the government, I realized that sustainability alone is not sufficient. How are we going to earn foreign exchange? How are we going to have a positive balance of trade? In that, there were many suggestions. But what is the low-hanging fruit? And one of the low-hanging fruits was tourism. Let’s promote tourism fully,” President Wickremesinghe declared.

The President acknowledged the need to move beyond the existing framework and embrace competition to elevate Sri Lanka’s standing in the global tourism market. Drawing parallels with countries like Vietnam, he questioned why they had more tourists despite being in the industry for a shorter period. President Wickremesinghe stressed the importance of increasing the number of tourists to 2.5 million in the upcoming year and subsequently expanding on this figure.

(PMD)

Continue Reading

Business

Free visas for nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan from Monday (27)

Published

on

By

The Controller General of Immigration and Emigration has stated that nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan will be granted free visas from Monday 27-11-2023 to 31-03-2024 as a pilot program to rebuild the tourism industry.

Nationals of the above nominated countries possessing, Diplomatic, Official, Public Affairs, Services and Ordinary Passports are eligible to enjoy a visa free regime under this scheme.

The above mentioned nationals should apply for Electronic Travel Authorization (ETA) before arriving in Sri Lanka subject to granting / issuing free of charge up to 31-03-2024.

Under this scheme tourists can enjoy a 30 days free visa period and a double entry facility is permitted within 30 days from the date of first arrival in Sri Lanka.

Free ETA under this scheme can be applied up to 31-03-2024.

The free ETA cannot be extended further and is limited only to thirty (30) days. In case the free ETA period of 30 days expires after 31-03-2024, an extension of visa could be applied subject to paying the appropriate fee.

Continue Reading

Latest News

Cabinet gives green light for Colombo Port City Order No. 3 of 2023 to be presented in Parliament

Published

on

By

The President in his capacity as the Minister of Investment Promotion has published the Colombo Port City Orders No. 3 of 2023 (Enterprises with Strategic Value – Guidelines for releasing or encouraging to award for customs – free enterprises) under the provisions of the Colombo Port City Economic Commission Act No. 11 of 2021 by the extraordinary gazette notification No. 2355/30 dated 25.10.2023.

The Cabinet of Ministers granted approval to the proposal furnished by the Hon. President in his capacity as the Minister of Investment Promotions to submit the said orders to the Parliament for its concurrence.

(PMD)

 

Continue Reading

Trending