ECONOMYNEXT – Sri Lanka’s Power Minister Gamini Lokuge has promised no power cuts till January 18, though the power regulator has given the nod for Ceylon Electricity Board to shed loads if there are capacity problems or fuel shortages.
Energy Minister Udaya Gammnapila had earlier asked for dollarized payments for fuel.
The utility had been running down its hydro storage, which is needed for the height of the dry season after a coal plant mal functioned and there were disruptions in fuel supply amid forex shortages.
Despite the regulators approval, the planned power cuts were vetoed by political authorities, putting the conservation plan out of kilter, industry analysts say. The Ceylon Electricity Board the pulled off a load shedding schedule.
Electricity will be provided with no interruptions till January 18, and there are discussions to get more fuel from state-run Ceylon Petroleum Corporation, Power Minister Gamini Lokuge said.
“We have received 3000 Metric tons of Furnace oil to the Kelanitissa power plant. We can provide electricity without any interruption till 18,” Minister Lokuge said Sunday.
“Tomorrow we hope to have a meeting with the Petroleum corporation to see whether we could get enough furnace oil till January 22.”
Lokuge said, it can be done because the CEB has informed about the furnace oil need for power generation, beforehand.
He said diesel ship was also in port and cargo could be unloaded after payments are made.
Sri Lanka is seeing booming imports and forex shortages after money printed to keep interest rates down and finance a deficit. At the moment money is mostly being printed to sterilize interventions (after giving reserves for imports).
Minister of Energy, Udaya Gammanpila had said, the CEB had not asked for furnace oil or diesel for power generation until the end of January and the next supply will start only from January 23 onwards.
However a breakdown of a 300 MegaWatt coal power station had increase the demand for furnace oil and diesel.
Minister Gammanpila had said the CEB will have to pay the Ceylon Electricity Board in US dollars for electricity.
Gammanpila said, the CEB requested an emergency need of diesel with the breakdown in Norochcholai power plant therefore, diesel till Monday will be provided to the CEB by the Petroleum Corporation.
“We have informed all those parties saying that we are unable to find dollar to import the fuel needed by them at a time where we struggling to import the fuel for general consumption,” Minister Gammanpila said in an interview with Sri Lanka’s Swarnavahini Television earlier this month.
“Therefore, if you find us some dollars, then we will be able to bring in the fuel needed for airplanes and furnace oil for electricity power plants.”
“Even CEYPETCO does not earn dollars, but somehow we are supplying for the demand we have. And I hope others will do the same.”
The CEB has a large number of export customers but they are not allowed to pay the utility in US dollars. Colombo/ Jan 16/2021)