“CPC agreed to provide fuel for CEB…..”
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“ No interruption for electricity supply…”

(Mr. Sulakshana Jayawardena, Information Director of the Ministry of Power, Energy and Business Development expresses to the media….)

“Yesterday Ceylon Petroleum Corporation (CPC) suspended supply of fuel required to operate the thermal power plants of the Ceylon Electricity Board. (CEB).  The reason for this suspension is exceeding the limit of loans given to CEB by CPC by more than Rs. 80 billion.  Running of thermal power plants is highly required to generate electricity under prevailing weather conditions. Due to this situation, 150 MW of electricity was decreased from the national grid. Consequently, some areas had to experience outage of electricity around an hour on the requirement ensuring the stability of national grid.

This issue was taken into discussion by the Ministry of Finance, Minister and Secretary of Petroleum Resource Development and  Chairman and officers of CPC. As a result it was agreed to settle the outstanding of CEB  to CPC with immediate effect, until that to supply fuel required for the generation of power by CPC to CEB.

The contribution of hydro power for the national grid is around 10%-12%. The major reason is the existing dry weather. Water level of the reservouirs used for hydro power generation has decreased up to 22%.  The contribution of thermal power plants for the generation of power is around 80%-85%. Out of it, the contribution of Lakvijaya power plant is 40%. The other thermal plants also provide a considerable contribution.

The credit limit of Rs. 80 billion given by CPC to CEB for the purchase of fuel exceed yesterday. However, attention has been drawn towards further increase of this credit limit. It is expected to give long term solutions in this regard and thereby prevent the inabilities of the electricity requirement within the national grid and fulfill daily electricity requirements of the public continuously.