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Friday, 11 March 2011 01:44 - - {{hitsCtrl.values.hits}}
Power and Energy Ministry yesterday insisted that it is readying to reverse Ceylon Electricity Board’s (CEB) white elephant image with fresh measures including a 10 year plan, high efficiency and reduction of wastage.
Power and Energy Minister Champika Ranawaka yesterday told the media that the organisation that has been making losses for the past 10 years has finally made a turnaround in 2010 and was looking to break even by 2014. Accordingly the total number of units sold is 9,262 GW hours amounting to a value of Rs.121, 862 million.
CEB recorded other incomes of Rs. 3,620 million, total income of Rs.125, 482 million and total expenses of Rs.120, 420 million. Total profit before tax is Rs.5, 062 million as against Rs. 11,210 loss recorded the previous year.
“To achieve this profit Rs. 2,673 million was to be charged to the Treasury for street lights but only Rs.200 million was charged. Therefore from the profit the CEB made, measures have been taken to provide Rs. 2,473 million back to the consumer,” a statement released by the ministry noted.
The CEB made a loss of Rs. 116, 956 million during the past decade. This loss has been absorbed by the Treasury or the Petroleum Corporation and in turn has been passed on to the people.
However, the people have been relieved of this burden during the year 2010; it added pointing out that with the introduction of the “Ten Year Plan” the CEB has managed to record a profit of Rs. 8006 million during the last half of the previous year. Prior to its implementation the loss was Rs.3043 million against 2010 numbers. The CEB was projected to incur a loss of Rs.40 billion at the start of the 2010.
“In comparison to 2009, in the year 2010 we have been able to reduce the harm done to the plant by 1.19%. The main reason for this is rejuvenating the Investigation Unit. By this the illegal use of electricity has been reduced by a considerable amount. Therefore the CEB has been able to stop the expensive thermal power generation which cost approximately Rs.2, 000 million.”
The CEB has been able to obtain a high profit from hydro electricity in 2010. Although there was a similar excess rainfall in 2000, 2001 and 2006 the Minister claimed that they were not able to reap the benefits to a maximum. What this means is that although the rainfall increases the profit does not automatically increase, he stressed.
Using new methods for staff administration and revision of the crude oil prices to prevent the Ceylon Petroleum Corporation and Ceylon Electricity Board from making losses were two reasons for the turnaround.
