Govt. mulls allowing CEB to directly import fuel to generate electricity

The government is contemplating on clearing legal barriers in granting Ceylon Electricity Board (CEB) to directly import fuel to power the thermal power plants in order to avoid future power cuts.

During a discussion held between Power Minister Gamini Lokuge, Energy Minister Udaya Gammanpila and President Gotabaya Rajapasksa, Minister Gammanpila had indicated the possibility of allowing the CEB o directly import fuel to power the thermal power plants by clearing the legal barriers, according to Co-cabinet Spokesman and Minister of Mass Media, Dullas Alahapperuma.

The delays in securing the required diesel and furnace oil from the Ceylon Petroleum Corporation (CPC) forced the CEB to shut down several thermal power plants leading to power cuts over this month.

Alahapperuma also noted that the CEB might be able to import the required fuel under the US$ 500 million fuel credit line granted by India.

Meanwhile, Alahapperuma revealed that President Rajapaksa had directed the Central Bank and the Treasury to provide US$ 50 million to release two oil shipments anchored off Port of Colombo. 

Further, President Rajapaksa also had ordered the Treasury to intervene to settle the Rs.93 billion arrears owed by CEB to CPC. Alahapperuma   noted that these outstanding payments would be settled in stages with Treasury support.

The CEB has been incurring losses since last September with the end of the rain season, as the utility provides electricity on a heavily subsidised price to the consumer. It was revealed recently that there were Rs.50 billion worth electricity bills in arrears at both CEB and LECO.

Sri Lanka’s State-run Ceylon Electricity Board may be given the right to import fuel directly rather than going through agencies of the Petroleum Ministry, Information Alahapperuma said.