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CEB losses cut by 50%

20 Dec 2020

  • 2020 loss Rs. 45 b despite Rs. 100 b forecast

  • Aided by lower demand and sufficient rainfall

  • Power shortage looms in April

  The losses incurred by the Ceylon Electricity Board (CEB) have been reduced by nearly 50% this year due to adequate rainfall, lower demand, and “proper management” by the new Board, CEB Chairman Eng. Vijitha Herath told The Sunday Morning on Friday (18). Accordingly, the CEB’s loss in 2020 is calculated to be around Rs. 45 billion despite the initial forecast at the beginning of this year being around Rs. 100 billion, based on the Rs. 80 billion loss it suffered in 2019. Eng. Herath said that rainfall was a bigger factor than the electricity demand reduction due to Covid-19 lockdowns, which is estimated to be around 3%. “The demand reduction due to Covid-19 is only a minor contribution, but the rainfall received throughout the year has made a massive contribution to the loss reduction.” The CEB incurred huge losses over many years since 2014 when the Norochcholai Coal Power Plant commenced its operations in the same year. It earned a profit of nearly Rs. 25 billion the year after the power plant commenced. However, this year, the Board has reduced the loss by nearly Rs. 45 billion. The CEB has not purchased emergency power this year and the contribution from the Norochcholai Power Plant is also one reason for the reduction of losses, the Chairman said, adding that the reduction in purchasing diesel-generated power also helped. Nevertheless, the CEB has predicted that there would be a power shortage by April next year during the dry season. Unless the country gets adequate rainfall, it will require an additional 200 MW, at least, to fill the gap between the demand and the supply. The CEB is of the view that the extension of already existing power purchase agreements with Cabinet approval would reduce CEB’s expenditure, but the proposal submitted by the Ministry of Power for this purpose has been rejected. “We will once again submit the proposal to at least extend the agreements by six months,” Eng. Herath said. The already existing agreements between the CEB, Ace Power Matara/Embilipitiya, and Asia Power Sapugaskanda will expire early next year. With the expiration of those agreements, the grid will have a gap of 170 MW.


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