Jan 17, Colombo: Sri Lanka's power monopoly Ceylon Electricity Board (CEB) says that the thermal power generation cannot be reduced although the hydro power generation is at a maximum.

Therefore, the fuel surcharge levied from the consumers cannot be removed from the electricity bill, the CEB says.

CEB Deputy Chairman Anura Wijepala said that the hydropower capacity is insufficient to cater the power consumption needs of the country.

He said that the hydro power capacity is 1400 megawatts while the daily power consumption is 2100 megawatt and the balance is met by the thermal power

Currently, hydropower contributes 61 percent while the remaining energy requirement is met by more expensive thermal energy.

The Central Bank of Sri Lanka recommended the government to consider price adjustments for the services provided by the Ceylon Electricity Board and Ceylon Petroleum Corporation to contain the losses incurred by the two state institutions.

The Bank pointed out that the CPC is supplying fuel to the CEB for electricity generation at a well below cost and the CEB is providing electricity at subsidized prices incurring significant losses.