The Ceylon Electricity Board (CEB) has clarified that it has never procured diesel for electricity generation through competitive bidding, including during the tenure of the previous management. The new management has not made any decisions to change this practice regarding the competitive procurement of diesel for electricity generation.

In a statement, Additional General Manager (Corporate Strategy) Eng. W.P.M. Fernando explained that the CEB purchases three types of petroleum fuels for electricity generation: Heavy Fuel Oil (HFO), Naphtha, and Diesel. He noted that diesel is the only fuel available for competitive bidding, as there are multiple distributors, some of which have only recently commenced operations.

Regarding fuel supply to the CEB's Thermal Power Plants, the CEB stated that both Heavy Fuel Oil and Naphtha are byproducts of the CPC refinery. The CEB acquires these fuels from the CPC at a mutually agreed price since there are no other feasible suppliers.

"The CEB does not consider diesel an economically viable option for electricity generation, especially in light of Sri Lanka's emission targets and the transition to cleaner energy. However, a minimal use of diesel power plants is necessary to meet peak demand, considering the current generation mix and during maintenance or rectification work on other larger power plants. Any use of diesel for electricity generation will be minimal and of short duration. As of 30 September 2024, only 1.1% of electricity was generated using diesel," the statement added.

The Additional General Manager emphasised that the CEB is committed to ensuring competitive procedures in all its business operations.