Power cut adversely affects SMEs, corporate sector

Power cuts effected through two time slots daily has created severe inconvenience to small and medium industries as well as corporate entities, the National Chamber of Commerce of Sri Lanka has said.

Larger industries are not affected to an extent, because most of them have standby generators. It's the small and medium scale businesses and industries that are mostly affected, the chamber said in a media statement on Wednesday.

“Furthermore the SMEs and corporate entities are facing greater difficulties of not having a proper schedule for power cuts. Irregular power cuts taking place in the country are causing further disturbance to their production processes, and they are not in a position to plan production schedules effectively. Due to this condition, export oriented production houses may fail with their delivery commitments which may lead to, loss of future orders. This crisis situation may further create a negat ive impact on attracting FDIs to the country as well as the Ease of Doing Business Index ranking,” it said.

The rift between the Ceylon Electricity Board ( CEB) and the Public Utilities Commission of Sri Lanka ( PUCSL) has to be urgently sorted out which is hindering the implementation of power projects. “The public's right for uninterrupted power should be the main aim of the Ministry of Power and Energy and they should be able to decide what should be the best option for this country on a properly planned criteria as the government is offering many incentives to the SME sector to increase production and exports. A balance between, coal, LNG, renewable energy sources such as solar and wind power has to be decided by a gove r nment appointed panel of experts in these subjects as well as environment bodies who are qualified and accountable and power plant type and locations should not be decided by various people having selfish motives,” the chamber said.

It urged the CEB to request the larger industries and the hotels to start using their Generator sets ( 500KVA or more) and pay for using them; it may be better than paying the private power plants which are waiting to supply power at rates between Rs.25 to Rs. 30 per unit.