CEB to incur additional expenditure due to non-implementation of long-term power generation plans

CEB to incur additional expenditure due to non-implementation of long-term power generation plans

CEB to incur additional expenditure due to non-implementation of long-term power generation plans

Written by Mayooran Kantharvel

23 Sep, 2017 | 9:53 pm

The government has been forced to incur a large cost due to the long term power generation plan of the Ceylon Electricity Board not being implemented.

The government has been forced to purchase power from the private sector, at a high cost, due to the non implementation of the plan
The Public Utilities Commission has conducted a study and created a report on the long term power generation plan of the Ceylon Electricity Board.

According to the report, the CEB’s long term power generation plan developed in 2006 planned to add a total of 4828MW of electricity to the national grid by 2016.

However, the CEB has only been able to add a a total of 3856MW of electricity to the national grid by 2016, a difference of nearly 1000mw.

The 2006 plan advocated the creation of 2100 MW through coal power and a further 520MW through gas.

However, during the period, the only addition to the grid was through the Norochcholai Coal Power Plant which created a total of 900mw. Due to the non implementation of the long term power generation plan there has been an 600% increase in the power being obtained from private fuel power plants.

When analysing past records, it can be clearly ascertained that these private fuel power plants have become the second largest power generator in the country.
Meanwhile, speaking on the subject, Prof. Rohan Samarajiva, Founding Chair – LIRNEasia, speaking on the issue said:

“.. Each year the demand for electricity increased by around 5%. The PUCSL states clearly that there wont be an issue for the next six months, but a tender process takes more than six months. We are at the brink today, unless the necessary actions are taken we will have to sign agreements when we are in a helpless state. When that happens we all know the situation that could arise. These costs do not come out of the minister’s pocket, they come out of our pockets. either through the electricity prices or the taxes..”
According to CEB records, a sum of nearly 40 rupees is paid per unit of electricity being obtained from these private power plants in an unplanned or emergency basis.”

A total of 35.5 billion rupees has been spent on purchasing power from these independent private power suppliers, so far this year. The figure for the year 2016 stood at 61.38 billion rupees.

According to CEB estimates, the board stands to suffer a loss of 52 billion rupees.

Each citizen of the country will have to spend roughly 2500 rupees in order to cover this loss.

In addition, the CEB Engineers Union recently wrote a letter to the subject minister calling on him to increase the prices of electricity or provide a government subsidy to the board.

Prof. Rohan Samarajiva, Founding Chair – LIRNEasia speaking on the matter said:

“.. The people need to understand that we pay for all this. The government does not have money. It collects money from us. If we pay directly through the electricity bill then the consumers will pay. Even if it is added as a tax, the public has to pay. When state institutions suffer losses, the public has to pay… “

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