PRIVATE POWER SUPPLIERS TO CEB EARN HUGE PROFITS

Spot or emergency power purchases by the Ceylon Electricity Board (CEB) is reported to have earned Private Power Providers (PPP) huge profits running into billions of rupees.

A Public Utilities Commission of Sri Lanka (PUCSL) spokesman told Daily Mirror that the companies that sold thermal power to the CEB had in their annual reports mentioned they earned huge profits by selling power to the CEB.

He said for instance, Ace Ambilipitiya, the 100 MWS thermal power plant had earned Rs.8,480 million in 2016 while the Barge Power Plant had earned Rs.7,783 million.

In 2017, the CEB has paid Rs.5,363 million to Aggreco International Projects Ltd. while Ace Matara was paid Rs.1,635 and Barge Power Plant Rs.8,918 million. The CEB had also paid Rs.11,836 to ACE Ambilipitiya for purchasing 100 MWS in 2017.

The total cost incurred by the CEB to procure power from PPP in 2016 and 2017 amounts to Rs.37,415 million.

“The danger is that the government has failed to launch a single power plant since the commissioning of the Lakvijaya Coal Power Plant, at Norochcholai in Puttalam in March 2011. Therefore, the CEB has no other option but to purchase power from PPP at higher rates incurring huge losses,” the spokesman said.

He said the CEB would have to depend on PPP till the government commissioned the 300 MWS LNG power plant at Kerawalapitiya in 2021 as scheduled.