Govt. to introduce ‘Mixed Generation Plan’

To absorb rapidly fluctuating Fuel Prices

While reiterating that the government had no intention to increase power tariff at least for the rest of 2018, Power and Renewable Energy Minister Ranjith Siyambalapitiya said the Ministry would introduce ‘Mixed Generation Plan’ (MGP) to absorb the negative impacts in the domestic market from the rapidly fluctuating fuel prices in the global market.

Minister Siyambalapitiya stressed that there was no power crisis in Sri Lanka at the moment and the Ceylon Electricity Board (CEB) was well equipped to provide uninterrupted power round the clock, round the year to the entire country. “The problem facing the CEB is the ever-increasing fuel prices in the global market. The current power tariffs were decided in April, 2013 when the price of a barrel of crude oil stood at US$ 40. Today it has been increased to US$ 71, a barrel. Refined petrol is US$ 78 a barrel and diesel is US$ 82 a barrel. A barrel of refined Kerosene costs US$ 85. As a result, the CEB incurs nearly Rs. 20 billion ever month,” Minister Siyambalapitiya stressed.

He said the government did not intend to increase power tariff despite the huge losses incurred by the CEB. Instead the Power and Renewable Energy Ministry had launched a massive national programme to develop alternative or renewable energy sources thereby reduce the dependency on costly thermal power that

The current power tariffs were decided in April, 2013 when the price of a barrel of crude oil stood at US$ 40, today it is US$ 71, a barrel. Refined petrol is US$ 78 a barrel and diesel is US$ 82. Refined Kerosene costs US$ 85. As a result, the CEB incurs nearly Rs. 20 billion ever month

needs fossil fuel as its power generation source.

“If we get enough water round the year enabling to produce at least 60% of electricity needed for the country from hydro power, we would be in a very advantageous position. But the ongoing draught running continuously for the last three years, the hydro power generation has come down to less that 20% of the total power generation. As a solution to this drawback we have launched a project to generate power using renewable energy sources such as solar power, wind power, Geothermal Heat and Ocean Power Technology which are relatively low cost and environment friendly in comparison to costly thermal power generation. The aim is to reduce dependency on thermal power and thereby absorb the losses to CEB from souring fuel prices in the international market,” Minister Siyambalapitiya added.

The CEB expects not to revise power tariff for the moment with the confidence that MGP would be a success, he emphasized.