CEB Engineers’ Union warns of power problems in 2019

• Says since no new power plants have been commissioned, any shortfall would have to be financed with power purchases from private operators   
• CEB losses halved in 2018 due to rains but any power purchasing in 2019 could drive up losses

By Nuwan Senarathna

Due to delays in constructing new power plants, Engineers’ Union has warned new Power and Energy Minister Ravi Karunanayake the the Ceylon Electricity Board (CEB) may have to purchase power from private entities to meet demand, which could result in an increase in its losses.  

“The CEB was unable to build new power plants after Lakvijaya Coal Power Plant in Norochcholai. Therefore CEB has had to purchase power from private plants to meet increasing demand, which caused heavy losses in 2017,” CEB Engineers’ Union President Saumya Kumarawadu told the Daily FT.

When Minister Karun-anayake met with the Engineers’ Union on Wednesday they had pointed out the lack of power plants could lead to a power crisis in the future, which could affect the county’s economy as well as increase CEB losses, which had reduced substantially in 2018.

“CEB losses rose to Rs. 50 billion in 2017 due to purchasing power from private plants. But we expect this year’s loss would be around Rs. 26 billion because the CEB was able to generate power from hydro plants due heavy rains this year. However if hydro power is less in 2019 the CEB would be forced to purchase power again,” he added.

Kumarawadu pointed out the same amount of rain could not be expected in 2019. Therefore CEB would have to rely on private power plants to meet power demand. He also noted CEB Engineers’ Union would meet Karunanayake this week for further discussions.

On Friday Karunanayake held a meeting with 58 trade unions at the Ministry to discuss matters pertaining to the CEB. During the meeting the trade unions had pointed out greater financial discipline was needed to cut down the losses incurred during the last few years. Trade unions also requested to look into incidents where disciplinary action was taken against members of trade unions.

“We have pointed out to the Minister that disciplinary actions were taken against certain trade union members just because they were actively speaking on behalf of CEB employees,” CEB Employees’ Union Convener Ranjan Jayalal said.

During the meeting, Karunanayake said he would take the necessary measures to turn CEB into a profit-earning Government entity and that he expected to reduce electricity charges in the future. However, the Minister had not mentioned a specific timeframe in relation to when he would reduce electricity charges.