Power Troubles

The AES Kelanitissa plant is back after a few days off the grid, after the government stepped in to defuse a crisis that was brewing with the Ceylon Electricity Board. The AES Kelanitissa plant is back after a few days off the grid, after the government stepped in to defuse a crisis that was brewing with the Ceylon Electricity Board. The entire 163 MW plant was disconnected a few days ago after the Ceylon Petroleum Corporation cut off fuel supplies, with AES owing Ceypetco Rs. 1 bn in arrears from March to December last year.

AES in turn, held back payments due to delays by the CEB – which is in the midst of a severe cash crunch, for electricity generated since March last year.

Unconfirmed reports say that the outstanding owed by CEB to AES Corporation is to the tune of Rs. 300 mn or over.

“We were taken off the electricity grid a few days ago. After the fire last year, we were forced to run the balance 110 MW but CEB has not paid us for that, so we stopped paying CPC,” Hayleys Chairman, Rajan Yatawara told LBO.

The AES plant is a joint venture between US based AES Power Corporation and local conglomerate Hayleys.

A spokesperson for the AES c