Industry bodies flag gaps in Draft National Electricity Policy

The Ceylon Chamber of Commerce, together with several leading industry chambers associations, have submitted joint observations on the Draft National Electricity Policy, stating that a number of critical issues have not been adequately addressed.

Accordingly, 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 have jointly submitted the joint observations with the Ceylon Chamber of Commerce, according to the statement.

While recognizing the need for reforms in the electricity sector, the submission flags several gaps in the draft policy that require closer attention. 

It notes that key areas including affordability, decarbonisation commitments, incentives for renewable energy, competition, and the long-term financial health of the sector are either missing or insufficiently addressed.

Concerns have also been raised over the proposed tariff revisions, particularly the removal of cross-subsidies and the proposal to restrict subsidies exclusively to households consuming less than 30 kWh per month, the statement said.

The submission warns that, in the absence of detailed analysis, such measures could undermine access to sustainable and affordable energy and pose potential fiscal risks.

The industry bodies further caution that provisions allowing 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 unbankable for international lenders, thereby increasing the cost of capital for Sri Lanka.

Calling for a more future-oriented approach, the submission stresses the importance of a policy framework that reflects modern electricity systems, including planning for the energy transition, energy storage, competitive markets, cross-border electricity trade, and emerging technologies, it added.

Accordingly, the Chambers and Associations have called for a comprehensive revision of the Draft National Electricity Policy, alignment with the Electricity Act, and resubmission following substantive stakeholder consultation, and reiterate support to engage constructively with policymakers to shape a policy that supports affordability, investment confidence, and Sri Lanka’s long-term energy security.