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Losses For This Year Rs. 29 Bn Says Minister

Sep 3, 2011 3:16:46 PM - thesundayleader.lk
  • CEB To Face Financial Crisis Next Year

By Mandana Ismail Abeywickrema

The Ceylon Electricity Board (CEB) suffered an estimated Rs. 29 billion loss this year, Power and Energy Minister Champika Ranawaka said.
The Minister also said that the CEB would face a financial deficit of Rs. 10 billion in 2011.
Ranawake had told the media earlier this year that the CEB had not forecasted a cash loss this year.
He had said that this year’s tariff increase will add Rs. Five billion to its coffers.
However the Minister told The Sunday Leader last week that the CEB would face a financial crisis next year and measures need to be taken to address the situation.
He explained that although the CEB’s financial performance had been satisfactory in the first six months of the year, the uncertainty in the weather conditions has resulted in an increase in thermal power which has in turn affected CEB finances.
Ranawaka said the CEB’s current expenditure for a month is approximately Rs. 15,000 million while the revenue is Rs. 10,000 million.
“The CEB incurs a monthly loss of over Rs. 4,000 million,” he said.
Although the CEB would have earlier adjusted electricity tariffs according to the increase in thermal power when faced with a power crisis, it could not do so after the establishment of the Public Utilities Commission.
“The increase in the use of thermal power and the 900 MW deficit of power in the national grid due to the failure to implement power projects at scheduled times has resulted in the power crises which has eventually led to a financial crisis at the CEB,” Ranawaka said.