CPC electrocutes CEB for Rs.2.3 b in fuel payments for power plant

Fresh battles are brewing between the Power and Energy Ministry and Ceylon Petroleum Corporation (CPC) with the former agreeing to pay the latter Rs.2.3 billion for the fuel taken to run the Kerawalapitiya power plant but in a disgruntled statement has alleged at a conspiracy backed by the private sector to stop production at the plant.

Power and Energy Ministry releasing a statement noted that the Kerawalapitiya power plant had to be established by the intervention of the president because private sector power producers wished to supply electricity at higher prices to the CEB. Therefore the statement notes, they are unhappy at the prospect of the Kerawalapitiya power plant being established as it gave the opportunity for the CEB to manufacture power at low cost.

“The Kerawalapitiya Yugadanaw power plant curtailed its power production 10 days ago after the CPC refused to provide it with fuel for its operations. Left with no other options the CEB had to purchase electricity from private producers incurring a massive loss of Rs.100 million during the last 10 days. This prompts us to consider that there might be a conspiracy by the private sector behind this move,” the statement said.

It added that when the power plant was opened the Treasury had given a guarantee of Rs.2.8 billion to the CPC for fuel, which had been expanded to Rs.4.5 billion or 87, 000 metric tonnes of oil. “Even though certain media have reported that the CEB owes Rs.3.8 billion the real figure is Rs.2.3 billion and the Power and Energy Minister has already ordered the CEB to commence these payments.”

The statement goes onto question why the CPC disregarded the Treasury and Cabinet decision to increase the guarantee and questions as to why three privately owned power generators who also owed money from the CPC are not shut down in the same manner.

Pointing out that the CEB provides the people a service the statement regrets having to pass this cost onto the consumer.