News1st Exposé: Is West Coast Power Pvt. Ltd. an independent Power Producer?

News1st Exposé: Is West Coast Power Pvt. Ltd. an independent Power Producer?

Written by Lahiru Fernando

02 Sep, 2017 | 10:43 pm

The Ceylon Electricity Board suffered a staggering loss of Rs. 13.2 billion in 2016.

This is an essential service to the general public. Nevertheless, unfortunately, the loss will also eventually be borne by the general public….

Interestingly, while the CEB suffer through record losses, there are certain individuals who have turned power generation into a lucrative stream of income.

At present, 15% of the country’s electricity demands are being met through Independent Power Producers (IPP) who generate this electricity through privately owned diesel power plants.

  • The Kerawalapitiya Power Plant: Operated by West Coast Power Pvt. Ltd – runs on Low Sulfur, Heavy Oil is the main private supplier of electricity.
  • Yugadanavi Power Station: has a capacity of 300 Mega-Watts, and commenced the generation of electricity in 2010.

West Coast Power Pvt. Ltd.

The Ceylon Electricity Board has entered into a 25 year power purchasing agreement with West Coast Power Pvt. Ltd.

According to the agreement;

  • An annual mandatory fee of Rs. 720 Million rupees need to be paid to West Coast power Pvt. Ltd.
  • Every time the power plant is kicked into operation CEB has to pay Rs. 2.7 Million.
  • Every time it is cooled down, a sum of Rs. 4.3 Million needs to be paid
  • In addition, a sum of 28 rupees is paid per unit of electricity obtained from West Coast power Pvt. Ltd.

In 2016 alone, CEB paid West Coast Power Pvt. Ltd. Rs. 29.484 Billion for the purchase of electricity.

While the company is generating record profits, serious suspicion has arisen with regard to the disbursement of those profits.

What happens to the profits of this company?

Is West Coast Power truly an Independent Power Producer?

News 1st investigations have revealed a great deal of information in this regard.

More details on this exposé, soon!

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