The Public Utilities Commission of Sri Lanka (PUCSL) is reportedly in the process of issuing an enforcement notice against the Ceylon Electricity Board (CEB).
This will make the CEB legally obligated to sign Fuel Supply Agreements (FSAs) with the Ceylon Petroleum Corporation (CPC) and the Ceylon Coal Company (Pvt) Ltd. to procure fuel for its thermal power plants.
Currently, the CEB is purchasing fuel and coal at prices that are not subject to any written contract. PUCSL points out that this situation directly affects the cost of electricity generation and ultimately the charges charged to consumers.
There is no transparency on how these prices are calculated, which has undermined regulatory transparency and the integrity of the overall fuel cost transmission mechanism. This has also shown that there is no accountability in the fuel procurement process.
PUCSL emphasizes that it is essential to enter into fuel supply agreements duly approved by the CEB to ensure the security, reliability and cost efficiency of power generation.
The Commission has also stated that these agreements should be transparent to all parties and should be part of the public consultation process.
Despite various orders and instructions issued in this regard since 2023, it is alleged that the Electricity Board has failed to submit acceptable complete and finalized agreements to the Commission.