• Consumers demand probe into Rs. 8 b loss to CEB 

Amid ongoing allegations over coal imports, the Energy Ministry yesterday (24) appointed a seven-member expert committee to evaluate the current methodology for supplying coal to the Lakvijaya Power Plant in Norochcholai.

The committee includes, Prof. W.D.A.S. Rodrigo (Chairman) – Department of Electrical Engineering, University of Moratuwa; Dr. N.A.I.D. Nissanka (Member) – Senior Lecturer, Department of Mechanical Engineering, University of Moratuwa; Dr. I.U. Attanayake (Member) – Senior Lecturer, Department of Mechanical Engineering, University of Moratuwa; Dr. R.M.D.S. Gunaratne (Member) – Senior Lecturer, Chemical and Process Engineering, University of Moratuwa; Dr. Udith Wijewardhane (Member) – Department of Electrical and Electronic Engineering, University of Sri Jayewardenepura; Dr. Geethal Siriwardhane (Member) – Department of Mechanical Engineering, University of Sri Jayewardenepura; and K.L.R.C. Wijayasinghe (Convener) – Additional Secretary (Power and Power Sector Restructuring Division), Ministry of Energy.

The committee is tasked with investigating technical discrepancies in coal testing and calculating any associated losses, and will also review technical issues identified in the reports and determine whether discrepancies occurred during shipment or handling, ensuring that proper penalties are applied.

Further, responding to the controversy that has arisen 

Addressing the Cabinet media briefing yesterday, Cabinet Spokesman Dr Nalinda Jayatissa said that coal shipments are inspected at the loading port by accredited laboratories. “Coal with a calorific value above 5,900 kilocalories per kilogram (kcal/kg) is accepted, while shipments below the threshold are rejected. For coal measuring between 5,900 and 6,100 kcal/kg, a penalty is applied according to the established procedures,” he noted.

He added that so far, 10 ships have arrived, eight of which have been fully unloaded. Reports for six of these ships indicate that penalties have been applied where the calorific value did not meet the required standard. Dr. Jayatissa stated, “For example, the first shipment of 59,831 metric tonnes incurred a penalty of United States Dollars ($) 2.07 million. Subsequent penalties were: $ 436,001 for the second ship, $ 484,929 for the third, $ 345,652 for the fourth, $ 500,192 for the fifth, and $ 510,677 for the sixth shipment.”

Dr. Jayatissa emphasised that the process is conducted through transparent procurement procedures, with no irregularities involved. He noted that past coal imports were not subjected to such systematic testing, making this the first instance where load port and discharge reports are being cross-verified.

Meanwhile, in the wake of the CEB reporting a loss of nearly Rs. 8 billion linked to reduced power generation at the Lakvijaya Coal Power Plant, Norochcholai, due to coal quality related issues, the Electricity Consumers' Association (ECA) called for the appointment of an independent commission to investigate coal-related issues.

Speaking to The Daily Morning yesterday (24), ECA General Secretary, Sanjeewa Dhammika said that both local and foreign test reports confirm the coal supplied to the Plant was substandard. "Indian laboratory test reports had identified the first shipment as substandard, and Cabinet Spokesperson Dr. Nalinda Jayatissa had also stated publicly there was an issue relating to the coal supplied."

Noting the CEB’s computer system generates real-time power generation data of the said Plant, he said those records show a significant drop in the generation output. He added that losses have been recovered only for the first shipment although nine shipments had been received, eight of which have been confirmed as substandard. “Reports relating to the shipments received after the first consignment were delayed, and has created uncertainty over the recovery of losses connected to those shipments."

Dhammika further said the financial impact would ultimately fall on electricity consumers if the recovery is not completed, adding that electricity tariffs would have to be increased during the tariff revision expected in August otherwise. "The Government continues to deny that there is a problem despite the existence of test reports and operational data. Complaints regarding the matter have already been submitted to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). However, no investigation has commenced yet. The CIABOC and the Auditor General's (AG) Department should immediately intervene in this issue, but they have failed to do so."

He said the Energy Ministry Secretary Prof. Udayanga Hemapala continues to serve as the Acting CEB Chairperson, creating a conflict of interest and leaving room for attempts to conceal what had taken place. "Responsibility for the coal procurement process extends to the President as the Finance Minister, the Cabinet of Ministers, the subject Minister, the Ministry Secretary, and the Procurement Committee. An independent commission should be appointed to investigate the matter."