ECONOMYNEXT – Sri Lanka state-run Ceylon Petroleum Corporation has demanded that Ceylon Electricity Board (CEB) settle 22 billion rupees in arreas to ensure continuous diesel supply, a CEB official said.
The CEB owed over 87 billion rupees to CPC mainly for diesel it bought to generate thermal power. The CEB has settled 17 billion rupees recently and it still has an overdue of 70.4 billion rupees.
“The CPC has informed us to settle another 22 billion rupees by the end of February to ensure a continuous supply of diesel in the future,” Andrew Navamani, CEB spokesman told EconomyNext.
The CPC’s request also comes after it increased the price of Naphtha and furnace oil with effect from December 31, 2021.
Price of Naphtha was increased to 84 rupees from 74 rupees while the price of furnace oil was jacked up to 110 rupees from 70 rupees.
The price paid by the CEB depends on which fuel to use or a merit order. The CEB has been using more diesel to run plants that would otherwise have used furnace oil had they been available.
“The general public pays the bill at the end of the month. No one pays it beforehand. So, finding money to purchase fuel is really difficult,” Navamani said.
Earlier, the CPC requested the CEB to make payments in US dollars, due to forex shortage in the country, to purchase the needed fuel.
Navamani said Kelanitissa power plant has been shut down due to lack of fuel and Yughadanavi power plant will also stop generating electricity from Thursday onwards.
“For the day, we will be able to balance electricity demand, but from Friday onwards, we will be facing challenges if we do not receive diesel”, Navamani said.
With the CEB running out of fuel fast, and thermal power plants being shut down due to lack of fuel, CEB requested to go for scheduled power cuts.
Public Utilities Commission, has hydro power generation to conserve depleted water, nd police air condition use of customers and start cutting power from those with their own generators.
CEB currently pays 121 rupees per liter for diesel. However, Andrew Navamani, Additional General Manager and the spokesman for the CEB, said, CPC has informed the price per litre will be increased to 146.31 rupees in the future.
“We get diesel at 121 rupees as of now, but we have been informed that it will be increased to 146.31 rupees by the CPC, but a date has not been mentioned for when the new prices will be implemented”
According to Navamani, the current price paid for the diesel includes the interest price from the overdue CEB has for the CPC.
“The price we get for diesel includes the interest of the due payment we have for the CPC.” (Colombo/Feb17/2022).