News
CPC to CEB: Pay up or face cut in fuel supplies
The cash-strapped Ceylon Petroleum Corporation (CPC) has asked the Ceylon Electricity Board (CEB) to pay up more than Rs. 50 billion in arrears or face reduction in fuel supplies for power generation.
The CPC has conveyed to the CEB that it has run into problems in opening Letters of Credit (LCs) for the purchase of two types of diesel needed for thermal power production as the CEB has failed to honour its commitments.
CEB Chairman W. Abeywickrama said the board had taken up the issue with the Treasury which would take a decision soon.
He said the CEB was paying the CPC Rs. 1.3 billion monthly, but was unable to pay the arrears as the Board’s expenditure too had increased over the past few months.
“We were affected by the drought and as a result the thermal power generation steadily increased,” Prof. Abeywickrama said.
He said the CPC was bound to continue with the supply of fuel to the CEB as power generation was an essential service.
A senior official of the Ministry of Petroleum Industries said the CEB bought electricity from the private sector for millions of rupees but had not taken effective measures to pay its dues to the CPC.
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