Home / Front Page/ CPC suspends fuel supply to CEB plants due to non-payment of bills

CPC suspends fuel supply to CEB plants due to non-payment of bills

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 9 July 2019 01:02


  • Outstanding runs up to Rs. 80 b
  • IPPs also in trouble as CEB delays settling payments due, leading to funding issues

The Ceylon Electricity Board (CEB) yesterday announced possible power cuts as the Ceylon Petroleum Corporation (CPC) refused to release fuel to thermal power plants exceeding the borrowing limit.

The grid has lost 150 MW, with some emergency power suppliers and some independent power producers not being issued fuel, leading to one hour-long power cuts in several areas in the country, Power and Energy Ministry’s Information Director Sulakshana Jayawardena told Daily FT.

The CEB has run up a bill of Rs. 80 billion with CPC without making payments prompting the latter to block fuel supply for all thermal plants which CEB has payments arrangements with the CPC. This includes emergency power plants of 20 MW each. The 20 MW plant in Hambantota run by V Power was not running yesterday as there was no fuel. According to sources V Power has been informed that fuel sufficient for two days will be issued to the plants.

Second V Power plant of 20 MW in Horana which is to be commissioned today will also have fuel sufficient to run the plant for only for two days, Daily FT learnt. Another IPP adding 20 MW to the grid has also been forced to shut their plant down temporarily yesterday as they are unable to finance fuel purchases till CEB settles outstanding bills to the tune of Rs. 200 million for supply of electricity last month. IPPs pay the CPC directly for the HFO fuel purchases. However some IPPs are running into financial difficulties due to non-payment of bills by the CEB.

The CPC took the decision to halt fuel supplies as they are unable to issue fuel “above the borrowing limit”, CPC Chairman G.S. Withanage told Daily FT.

“If we do so the officials will be held accountable later and we cannot risk this,” he said.

CEB officials rushed to have negotiations with the CPC to come to a settlement. The Treasury has agreed to release part of the funds needed to settle the outstanding with the CPC, Jayawardena said.

However Daily FT was not able to confirm if CEB will have funds to settle outstanding bills that the CEB has with IPPs adding to the grid.  

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Expand employer-backed childcare to close the gender gap in Sri Lanka

Friday, 19 July 2019

In Sri Lanka, women’s formal workforce participation is at only 36%, compared with 75% for men. Sri Lanka could raise its gross domestic product by as much as 20% in the long-run by closing the gender gap in the workforce, according to one estimate

Who should be our next president?

Friday, 19 July 2019

After the recent terrorist attacks and the subsequent violence unleashed against innocent Muslims by racists, Sri Lankans are searching for a leader who can save the country. Many have lost faith in the leaders, due to the breakdown in the security a

The messed-up lives

Friday, 19 July 2019

It can be seen that there is a serious mess-up not only in the State and the social system in Sri Lanka, but also in the lives of the people. People of Sri Lanka are having smiling faces, yet those who live happily are very rare. You will find that u

Reimagining our reality: the last best hope for us?

Friday, 19 July 2019

Imagination can be a powerful tool for shaping everyday reality. We use it to construct everything from the mundane to the mystic. A down-to-earth example would be our subscription to the idea of the intrinsic value and worth of every human being. I

Columnists More