• Notes agreements would allow CEB to purchase fuel at special rates

The Electricity Consumers’ Association (ECA) urged the Public Utilities Commission of Sri Lanka (PUCSL) to take tougher action against the Ceylon Electricity Board (CEB), including withholding approval for electricity tariff revisions, until the CEB signs fuel supply agreements (FSAs) with the Ceylon Petroleum Corporation (CPC).

Speaking to The Daily Morning, ECA General Secretary, Sanjeewa Dhammika said that the CEB has repeatedly ignored directives to enter into FSAs with the CPC, even though the absence of such agreements directly affects generation costs and the electricity tariffs imposed on the public.

“Cost is the most important factor in determining tariffs, and fuel prices are central to that cost. The CEB continues to overlook the requirement to sign agreements with the CPC. Unless the PUCSL takes strict measures, such as refusing to approve tariff revisions until the CEB complies, this will never be resolved,” he said.

He added that formal agreements would allow the CEB to purchase fuel required for electricity generation at negotiated special rates, instead of paying the same retail prices charged to ordinary consumers. However, he said that these arrangements must be fixed transparently and efficiently, as directed by the regulator.

Energy Ministry Secretary, Prof. Udayanga Hemapala, who is also the Acting CEB Chairperson, was not available for comment.

The call comes after the PUCSL announced it would issue an “enforcement order” on the CEB to compel it to finalise FSAs with both the CPC and the Lanka Coal Company. At present, the CEB sources fuel and coal for its thermal power plants without any binding supply agreements, a practice that has raised concerns over transparency, financial discipline, and consumer costs.

Since 2023, the PUCSL has issued several directives instructing the CEB to submit complete, finalised agreements in a form acceptable to the commission. The commission’s latest notice said the CEB had failed to comply, disregarding its tariff decisions and violating conditions of its generation licence under the Sri Lanka Electricity Act.