Sri Lanka power regulatory chief accuses state-run CPC of wrong crude import
ECONOMYNEXT – An explosive allegation by the head of Sri Lanka’s utility regulatory authority on the quality of a recently imported crude oil consignment has led to a swift defence and a promise of legal action by the minister in charge.
Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake told a privately owned television station on Sunday September 25 that the state-run Ceylon Petroleum Corporation (CPC) had imported the wrong crude oil with the wrong composition.
Ratnayake claimed the unsuitability of the naphtha refined from this consignment with its high sulphur content was the reason for a recent extension in Sri Lanka’s scheduled daily power cuts from one hour and 20 minutes to two hours and 20 minutes.
Power & Energy Minister Kanchana Wijesekara tweeted Monday morning that the state-run Ceylon Electricity Board (CEB) had requested the extension due to a breakdown at the Lakshapana hydro-power station and insufficient funds for diesel, fuel oil and hydro management.
The CPC will respond legally to the PUCSL chairman on the allegation, said Wijsekarara, claiming that the corporation has adequate stocks of diesel and fuel oil.
CPC will respond legally to Chairman, PUCSL on the accusations on the quality of Crude Oil. CPC has adequate stocks of Diesel & Fuel Oil. Extended Power Cuts was requested by CEB due to breakdown at Lakshapana, insufficient funds at CEB for diesel & fuel oil & Hydro management.
— Kanchana Wijesekera (@kanchana_wij) September 26, 2022
The minister later tweeted that diesel and furnace oil is used at a minimum to reduce power generation costs and will be made available by the CPC on requirement by the CEB.
The request made by CEB to PUCSL detailing the reasons for extending the power cuts.
Furnace Oil & Diesel Fuel is used at a minimum to reduce the cost of Power Generation by CEB. Furnace Oil & Diesel will be made available by CPC for Power Generation on the requirements of CEB. pic.twitter.com/UY3RodIss1
— Kanchana Wijesekera (@kanchana_wij) September 26, 2022
The power regulator had initially refused a CEB request to increase the power cut duration on the grounds that CEB did not provide a proper justification for the request, but approval was granted later.
“There are many reasons for [the extension] but they have imported the wrong crude oil and have refined the wrong naphtha out of it,” said Rathnayake speaking in a talk show aired on the privately owned Hiru TV.
“This naphtha has high sulfur content, so we are unable to run the plants using this oil.”
He blamed the CPC for the mishap and said that a new problem comes up every month.
“You can’t even run the plant using that crude oil. The only option left for the importers is to drink it,” he said.
“The people who imported the oil should decide what should be done to the oil. We don’t know when Sri Lanka will see 24 hours of continuous electricity because there is a new issue created constantly.”
Ratnayake also claimed that the island could face up to 10 hours of power cuts if it runs out of coal.
He said only 250,000 metric tons of coal is available in the country.
To run a coal power plant for 24 hours, 2,500 metric tons of coal is required.
The official warned that the current stock will run out by the last week of October while the island doesn’t have dollars to purchase fuel as suppliers only accept advance payments. (Colombo/Sep26/2022)
