• Electricity Consumers Asso. alleges power generation-related fuel purchases being made at retail prices over wholesale prices 
• Seeks repeal & replacement of fuel pricing formula 

The Electricity Consumers' Association (ECA) charged that the Ceylon Electricity Board (CEB) adds an extra financial burden of approximately Rs. 50 billion onto electricity consumers by purchasing fuel for electricity generation at retail prices.

Speaking to The Daily Morning, ECA General Secretary Sanjeewa Dhammika said that fuel was supplied to the CEB at wholesale prices based on cost before 2022, but that a system where the CEB purchases fuel at retail prices was created due to decisions made by the Ministry of Power and Energy during the previous Government. 

“During the previous Government, fuel was supplied to the CEB at retail prices. Due to this, a huge additional cost is placed on the electricity consumer. Electricity is an economic commodity on the one hand; hence, the Government should pay attention to it when pricing it. The Public Utilities Commission of Sri Lanka (PUCSL) has imposed conditions on the CEB that they must enter into an agreement with the Ceylon Petroleum Corporation (CPC) to purchase fuel at wholesale prices, but the CEB continues to violate those conditions,”he said. 

To point out that the CPC is making profits, he claimed that the former subject Minister directed that fuel be supplied to the CEB at the same rate as that given to the retail customer, and added that the same resulted in the electricity tariff increasing significantly. 

“The CEB has purchased nearly 600 million litres of fuel to generate electricity in 2022. The quantity of fuel purchased in 2023 (last year) has exceeded 750 million litres. The quantity of fuel purchased by the CEB is going up. This fuel is supplied to the CEB not by bowsers and through filling stations, but through pipelines from the refinery. In that case, some expenses incurred in supplying fuel to the retail customer can't be applied to what is supplied to the CEB,” he went on to say. 

Claiming that they expected the Government to rectify this issue during the latest fuel price revision, Dhammika alleged that the current Government has however failed to do so. “Electricity consumers have had to bear an additional burden of about Rs. 50 billion as the CEB is purchasing fuel at retail prices.”

Speaking further, he claimed that large-scale irregularities have taken place in fuel purchasing throughout the past two years, adding that their burden is placed on the people through the fuel pricing formula. “The new Government must abolish the existing fuel pricing formula and introduce a new formula. That will be the way to eliminate these large scale irregularities. The former ministers have also been assisted by public officials in carrying out these irregularities. An investigation carried out by the PUCSL revealed that massive irregularities are taking place in importing fuel. However, the former Government did nothing about it. I also lodged a complaint with the Commission to Investigate Allegations of Bribery and Corruption.” he claimed, and added that the current Government should look into the matter and initiate appropriate action.

Former Power and Energy Minister Kanchana Wijesekera and the incumbent CEB Chairperson Dr. Tilak Siyambalapitiya were not available for comment.