• Says EGL is a direct fuel consumer 

Even as talks continue over fuel supply terms for electricity generation, a dispute between the Electricity Generation Lanka (Pvt) Ltd and the Ceylon Petroleum Corporation over dealer margins remains unresolved, with the latter maintaining that the charges cannot be waived because EGL functions as a direct fuel consumer.

Speaking to The Daily Morning yesterday (18), Energy Minister Anura Karunathilaka said the disagreement centred on dealer margins linked to fuel prices.

“The electricity entity says that the dealer margin should be removed. But there is a problem because it is a fuel consumer. The CPC’s position is that the charge cannot be removed because the electricity entity is a direct consumer,” he said.

He added that discussions between the two parties were continuing, with authorities now exploring an alternative mechanism to ensure a fair arrangement instead of altering the standard dealer margin structure.

“We may have to look at another option. Instead of dealer margin-related changes, we need to create a fair mechanism for the electricity entity through a different method. We are currently studying the matter,” he said.

The remarks came in the wake of allegations that the electricity generator has continuously failed to enter into fuel procurement agreements with the CPC. Electricity Consumers’ Association General Secretary Sanjeewa Dhammika recently alleged that although the Public Utilities Commission of Sri Lanka (PUCSL) had repeatedly instructed the power generator over the past three years to sign an agreement with the CPC regarding fuel purchases, those directives had not been implemented. He further claimed that the PUCSL had even issued written orders on the matter but had failed to pursue legal action despite having the authority to do so.

However, PUCSL Director – Communication Jayanath Herat said that the Commission had acted within the required timeframe and followed the necessary procedures regarding the issue. He added that legal action could not be taken immediately and that a specific process had to be followed before action could be pursued under the relevant legal provisions. He further noted that conditions requiring the relevant companies to enter into fuel procurement agreements had been included during the latest electricity tariff revision process.