The Ceylon Electricity Board (CEB) yesterday reached an agreement with the Ceylon Petroleum Corporation (CPC) to obtain fuel on credit for the generation of thermal power, CEB spokesman Sulakshana Jayawardane told media and as such would be able to avoid power cuts.
The CPC suspended the supply of fuel on July 8 after the CEB failed to settle the outstanding amount of Rs.80 billion resulting in the country experiencing power cuts.
“We agreed to settle all outstanding amounts in a phased out manner,” Mr. Jayawardane said.
The CEB depends on thermal power for 40 per cent of its electricity generation amid Hydropower generation dropping to 10-12 per cent because of insufficient rainfall.
Mr. Jayawardane said this situation underscores the need to set up a major power plant as a priority.
He said the government has awarded tender for an LNG power plant to generate 300 megawatts of electricity and it was likely to be commissioned in 2021 or 2022.