Aug 04, 2017

CEB faces severe challenges from ongoing drought

The Ceylon Electricity Board (CEB) faced severe challenges due to dry weather condition prevailed in the country from the latter part of 2016. Hence, an operating loss of Rs. 16,590 million in the first four months of 2017 has been recorded compared to the operating loss of Rs. 5,781 million recorded in the same period of 2016. Cost per unit without tax has increased to Rs. 20.28 per kWh in the first quarter of 2017 over Rs. 17.54 per kWh recorded in 2016. 

Generation mix comprised with 527 GWh Hydro, 1,351 GWh Thermal (Fuel) and 1,603 GWh Thermal (Coal) during the reporting quarter, which has changed from 36:31:33 in 2016 to 15:39:46 in first three months of 2017 due to the decrease of hydro power generation as result of the dry weather conditions that prevailed. Further, the total outstanding obligations to the banks of CEB in the first quarter stood at Rs.31,744 million compared to Rs. 39,055 million as at 30.04.2016. 

The Treasury has provided Rs. 6,000 million through a supplementary allocation to CEB to compensate for the additional cost incurred in utilizing high cost thermal power generation in order to provide an uninterrupted supply of power to the country.