Sri Lanka power conspiracy alleged in fuel move

Mar 28, 2011 (LBO) - Sri Lanka's power ministry has alleged that a private sector conspiracy could be behind the sudden withdrawal of fuel supplies to a thermal power plant which had failed to pay arrears. It said in a statement the Ceylon Petroleum Corporation, under the petroleum ministry, had stopped supplying heavy fuel oil to the Yugadanavi power plant which supplied low-cost electricity to the Ceylon Electricity Board which comes under the power ministry.

The 300 megawatt power plant at Kerawalapitiya, on the north-west coast, is one of the cheapest suppliers of thermal power to the CEB.

The CEB was forced to buy power from private thermal power plants at a higher price because the Yugadanavi plant was forced to shut down when fuel supplies were stopped, the statement said.

The sudden stoppage had caused the CEB a loss of 100 million rupees in the last 10 days, the power ministry said.

"Suspicions have arisen whether a conspiracy by the private sector is behind the move," the statement said.

"It is questionable why the law is not being applied in the same way against three thermal power plants owned by a senior CPC official which sells electricity at high prices to the CEB,"