Apr 27, Colombo: Sri Lanka's state-owned power monopoly, Ceylon Electricity Board (CEB) says it will not remove the fuel adjustment surcharge that was introduced in February last year.
The fuel adjustment surcharge was introduced as a temporary measure and has continued for over one year.
CEB Chairman W.B. Ganegala has told the media that the fuel adjustment surcharge would have to remain unchanged.
"This is because we have to pay back arrears to the Ceylon Petroleum Corporation for fuel supplies, loans taken from state banks and payments due to independent power suppliers," he has said.
Sri Lankan President last year said as the second and third phases of Norochcholai coal power plant, scheduled to be completed by December last year, add thermal power to the national grid, it will be possible for the government to systematically remove the fuel adjustment charges added to the rate increase.
However, the CEB Chairman explained that the breakdowns at the Norochcholai thermal power plants for several weeks led to enhanced production of thermal power.
According to the Chairman, a fuel adjustment surcharge refund, at least in part, would be possible if hydropower generation increased.
The temporary fuel adjustment surcharge has doubled CEB profits last year - the surcharge earned it Rs. 25.43 billion and its profits for last year stood at Rs 21.09 billion.