President Anura Kumara Dissanayake today acknowledged that low-quality coal imports had affected electricity generation, but assured that any additional costs would not be passed on to consumers.
Speaking in Parliament, the President said some coal-powered units had failed to generate the expected output, noting that although each unit is expected to produce around 270 megawatts, output had fluctuated, with one unit producing 270 MW while another generated about 266 MW.
He further noted that although the coal power complex has a total capacity of 900 MW, only around 810 MW was being generated at times, partly due to coal quality issues rather than problems with the plants or procurement process.
The President explained that coal quality is assessed through laboratory testing, with 80% of payments made after initial verification and the remaining 20% released following further testing by an independent laboratory in India, which has been in use since 2023.
According to the President, three coal shipments had failed tests, while in other cases, despite laboratory clearance, system performance indicated that expected generation levels were not achieved.
He said penalties had been imposed on suppliers based on these findings, with some payments withheld, including portions of the remaining 20%, and in certain instances even part of the initial 80% payment.
Dissanayake added that the first shipment priced at USD 98 per tonne had effectively dropped to around USD 68 per tonne after penalties were imposed.
He stressed that any additional costs arising from low-quality coal would be recovered from the supplier companies and not passed on to electricity consumers, adding that legal action would be pursued if necessary. (Newswire)