The Ceylon Chamber of Commerce, in collaboration with the American Chamber of Commerce, Exporters Association of Sri Lanka, Federation of Renewable Energy Developers, Joint Apparel Association Forum, National Chamber of Commerce of Sri Lanka, and Sri Lanka Association for Software and Services Companies, has submitted joint observations on the Draft National Electricity Policy. The submission highlights several key issues that have not been adequately addressed.
While acknowledging the necessity for reform within the electricity sector, the submission identifies several gaps in the draft policy that warrant closer scrutiny. Critical areas such as affordability, decarbonization commitments, incentives for renewable energy, competition, and the long-term financial health of the sector are either missing or insufficiently covered.
The proposed tariff revisions in the draft energy policy raise concerns, particularly regarding the elimination of cross-subsidies and the proposal to limit subsidies to households consuming less than 30 kWh per month. Without detailed analysis, these measures could undermine access to sustainable and affordable energy and may lead to fiscal risks.
Provisions allowing for uncompensated curtailment, the removal of feed-in tariffs, and the imposition of mandatory time-of-use tariffs on rooftop solar users could render renewable energy projects un-bankable for international lenders, consequently increasing the cost of capital for Sri Lanka.
The submission calls for a more future-oriented approach, emphasizing the need for a policy that reflects modern electricity systems. This includes planning for the energy transition, energy storage, market competition, cross-border electricity trading, and emerging technologies.
The Chambers and Associations request a comprehensive revision of the Draft National Electricity Policy, alignment with the Electricity Act, and resubmission following substantive consultation. They reiterate their support to engage constructively with policymakers to develop a policy that supports affordability, investment confidence, and Sri Lanka’s long-term energy security.
Link to submission – Download PDF
The post Industry Bodies Flag Gaps in Draft National Electricity Policy appeared first on Financial Chronicle Biz English | Sri Lanka Business News.
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