The Ceylon Electricity Board (CEB) has increased its revenue only by 3 per cent for 2017 while incurring a Rs. 49,231 million loss, a 240 percent increase from 2016, the Treasury’s Annual report shows.
“CEB operational costs increased to Rs. 272,962 million from Rs. 231,147 in 2016. This significant increase in operational costs has resulted in a 240 per cent increase from last year,” the report said.
The report finds that the CEB recorded a direct generation cost of Rs. 184.60 billion in 2017 compared to the Rs.152.00 billion in 2016 reflecting a 21 per cent additional cost.
Due to the absence of implementing a cost reflective price mechanism for the CEB, it had to manage its liquidity requirement through borrowings from State banks, which came to Rs. 8,691 million at the end of 2017 compared to Rs. 6108 million in 2016.
Although CEB has been able to achieve its household electrification network exceeding 99 per cent, the lack of new additional energy sources on the national grid has resulted in CEB purchasing emergency power at high costs.
“The Long Term Least Cost Generation Expansion Plan prepared by the CEB has to be approved by the PUCSL augmenting the generation capacity by at least 400MW every year from 2018 to 2037. It requires an additional investment of Rs.85 billion (USD 550 million) every year,” the report finds.
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