Economics

CEB Accused of Rs. 50 Billion Burden on Electricity Consumers

The Electricity Consumers’ Association (ECA) has alleged that the Ceylon Electricity Board (CEB) is imposing an additional financial burden of approximately Rs. 50 billion on electricity consumers by purchasing fuel for electricity generation at retail prices.

In a statement to The Daily Morning, ECA General Secretary Sanjeewa Dhammika explained that, prior to 2022, fuel was supplied to the CEB at wholesale prices. However, a system was implemented during the previous government that required the CEB to purchase fuel at retail prices, leading to increased costs for consumers.

“During the previous government, fuel was supplied to the CEB at retail prices, placing a significant financial strain on electricity consumers. As electricity is an economic commodity, the government must consider this when setting prices. The Public Utilities Commission of Sri Lanka (PUCSL) has mandated that the CEB enter into agreements with the Ceylon Petroleum Corporation (CPC) to obtain fuel at wholesale prices, but the CEB continues to disregard these requirements,” Dhammika stated.

He noted that while the CPC is generating profits, the former minister of power directed that fuel be sold to the CEB at the same rate as retail customers, resulting in higher electricity tariffs.

According to Dhammika, the CEB purchased nearly 600 million litres of fuel for electricity generation in 2022, with that figure rising to over 750 million litres in 2023. He emphasized that this fuel is supplied to the CEB through pipelines directly from the refinery, meaning that some costs associated with retail sales should not apply.

Dhammika expressed disappointment that the current government did not address this issue during the latest fuel price revision, stating, “Electricity consumers have had to bear an additional burden of about Rs. 50 billion because the CEB is purchasing fuel at retail prices.”

He further claimed that large-scale irregularities in fuel purchasing have occurred over the past two years, with consumers bearing the costs through the flawed fuel pricing formula. He urged the new government to abolish this pricing structure and implement a new formula to eliminate these irregularities. Additionally, he revealed that he had lodged a complaint with the Commission to Investigate Allegations of Bribery and Corruption regarding these issues.

Attempts to reach former Power and Energy Minister Kanchana Wijesekera and current CEB Chairperson Dr. Tilak Siyambalapitiya for comment were unsuccessful.