CEB projects loss of Rs. 13 bn

By Ifham Nizam

The Ceylon Electricity Board (CEB) estimates that its losses for 2011 would be in the region of Rs. 13 billion.

CEB General Manager Nihal Wickremasooriya told The Island that it was the projected forecast and it could be higher or lower depending on the weather patterns.

However, Power and Energy Ministry sources yesterday said that the losses could be between Rs. 15 and 20 billion.

CEB sources said that the prevailing weather pattern could be one of the major contributory factors.

"However, the management also took some decisions, maybe to show more prof its by using excessive hydro power. This was not the usual procedure at the CEB. Optimal use of water is the key," he added.

Giving examples, the official said that if hydro costs Rs. 10.00 and thermal Rs. 15.00, there should be a balance, Rather than heavily depending on hydro power alone.

"By raking a gamble, especially when there is no rain, one is compelled to switch to expensive energy sources costing about Rs. 50.00. This in turn puts a lot of pressure on the CEB," he added.

Power and Energy Minister Patali Champika Ranawaka says that there had been loss Rs. 3.6 billion since July and the Board losses Rs. 12 million per day on an average.

The Ceylon Electricity Board recorded a net profit of five billion rupees during 2010 thus marking a turnaround for the entity that was making consecutive losses since the 2000.

The Board made a net profit of five billion rupees during 2010. During the year 2010, it earned 121 Billion Rupees by selling electricity while along with other income the total revenue reached 125.48 billion rupees. The total expenses of the entity during the year have recorded a sum of 120 billion rupees.

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