CEB and CPC reach agreement over debt settlement and fuel supply

CEB and CPC reach agreement over debt settlement and fuel supply

10 July 2019 10:06 am

Reportedly, the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC) has reached an agreement yesterday (09) to obtain fuel on credit for the generation of thermal power, later to be settled in phases. 

The CPC suspended fuel supply on July 08 after the CEB failed to settle the amount of 80 billion rupees, dragging the country into an unexpected power outage that lasted for around one hour. 

The agreement reached between the two bodies would settle the said amount and would avoid unnecessary power outages in future, according to CEB spokesman Sulakshana Jayawardane.

The CEB depends on thermal power for 40% of its electricity generation, amid insufficient rainfall dropping hydropower generation from 10-12%. 

The dropping has underscored the need to establish a major power plant as a priority, according to Mr. Jayawardena. He said tender, which is likely to be commissioned in between 2021 and 2022, has been awarded by the government for an Liquefied Natural Gas (LNG) power plant to generate 300 megawatts.

MIAP