Ceylon Electricity Board Explained

Ceylon Electricity Board - CEB
Native Name:ලංකා විදුලිබල මණ්ඩලය - ලංවිම (இலங்கை மின்சார சபை - இமிச)
Type:Government-owned corporation
Fate:Privatised
Location:50 Sir Chittampalam A, Gardiner Mawatha, Colombo, Sri Lanka
Revenue: Rs 121.5 billion (2020)[1]
Operating Income: Rs billion (2019)
Profit: Rs 425 million (2020)
Assets: Rs 914.001 billion (2019)
Equity: Rs 271.875 million (2019
Num Employees: 26,114 (2019)[2]
Deputyminister8 Name:-->
Key People:M.M.C. Ferdinando (Chairman)
Eng. (Dr.) Narendra De Silva (Acting General Manager) [3] [4]
Production: 15,922 GWh (2019)
Parent:Ministry of Power
Subsid:Lanka Electricity Company (55.2%)
Lanka Coal Company
LTL Holdings
Industry:Electricity generation,
Electricity transmission,
Electricity distribution,
Electricity retailing

The Ceylon Electricity Board - CEB (Sinhala; Sinhalese: ලංකා විදුලිබල මණ්ඩලය - ලංවිම|Lankā Vidulibala Mandalaya - Lanwima; Tamil: இலங்கை மின்சார சபை - இமிச), was the largest electricity company in Sri Lanka. With a market share of nearly 100%, it controlled all major functions of electricity generation, transmission, distribution and retailing in Sri Lanka. It was one of the only two on-grid electricity companies in the country; the other being Lanka Electricity Company (LECO). The company earned approximately Rs 204.7 billion in 2014, with a total of nearly 5.42 million consumer accounts.It was a government-owned and controlled utility of Sri Lanka that took care of the general energy facilities of the island. The Ministry of Power and Energy was the responsible ministry above the CEB. Ceylon Electricity Board (CEB), established by the CEB Act No. 17 of 1969, was under the legal obligation to develop and maintain an efficient, coordinated and economical system of electricity supply in accordance with any licenses issued. The CEB was dissolved and replaced by 12 successor entities under the 2024 Electricity Act.[5] [6] [7]

Subsidiaries

CEB has following subsidiaries[8]

Electricity Generation

Hydro power

Electricity generation by CEB is primarily done by hydropower. Hydropower is the oldest and most dependent source of electricity generation, taking a share of nearly 42% of the total available grid capacity in December 2014, and 37% of the power generated in 2014.[9] Hydropower generation facilities have been constantly under development since the introduction of the national grid but are currently declining due to the exhaustion of the resource.

In 2014, then Media Spokesperson at the CEB, Senajith Dassanayake said the generation of hydropower has dropped to 37%; as a result, 60 percent of the electricity needs have to be fulfilled by thermal energy.[10]

Thermal Power

The Norocholai Coal Power Station, the only coal-fired power station in the country is owned by CEB; it was commissioned in late-2011 and finished in 2014, under loans from the Export-Import Bank of China. It added further of electrical capacity to the grid. The Sampur Coal Power Station, is currently under consideration in Trincomalee.

Coal Power Development

In 2011, the Ceylon Electricity Board opened a new coal power plant named Puttalam Lakvijaya. On 13 February 2011 it was synchronized with the system.[11]

On 17 September 2014, US$1.35 billion coal-fired Norochcholai Power Station was commissioned by the Chinese President Xi Jinping on his visit to Sri Lanka. The Export-Import Bank of China provided a US$450 million loan for the first 300-megawatt unit at the power plant. The power plant was officially commenced on 16 September 2014.

Wind Power Development

CEB launched Sri Lanka's largest wind farm Thambapavani added to the national grid. The project started in 2014. Power station generate more than 100 MW.[12]

Controversies

Blackouts and shutdowns

2019 electricity crisis

See main article: 2019 Sri Lanka electricity crisis.

Losses

Ceylon Electricity Board has lost 25.5 billion rupees in 2011, and run up debts of 121 billion rupees with a petroleum distributor and independent power producers.[21]

In 2012, the CEB lost 61.2 billion rupees and the Ceylon Petroleum Corporation which supplied fuel below cost 89.7 billion rupees. To cover up the loss, the CEB increased power tariffs on a large scale. The CEB expected to get revenues of 223 billion rupees—or 45 billion rupees more than the earlier tariff—from the price hike, but subsequently lost 33 billion rupees in 2013 on total expenses of 256 billion rupees.[22]

On 16 September 2014, after officially opening a completed $1.35 billion Chinese-financed 900 MW coal power plant project, Sri Lankan President at the time, Mahinda Rajapaksa addressed the nation saying that the electricity bills of the people will be reduced by 25%.[23] The CEB stated that it will take about two weeks to come up with a process of creating electricity bills to reflect the reduction in prices.[24]

Employee Tax

The CEB has been accused of Tax fraud by the Campaign for Free and Fair Elections (CaFFE), which has claimed that CEB has not deducted PAYE from its engineers and senior staff since 2010 amounting to Rs. 3465 million. CaFFE has claimed that this amount has been recovered from the consumer instead.[25]

Restructuring

A restructuring committee was appointed as per the approval of the Cabinet of Ministers to submit proposals to restructure the CEB within a month. Committee members consisted of former and current administrative officers of the Sri Lankan Government Service.[26]

See also

Notes and References

  1. Web site: Sri Lanka's CEB loses Rs4.5bn up to June. 2022-02-24. 2021-08-17. EconomyNext. en. 24 February 2022. https://web.archive.org/web/20220224175202/https://economynext.com/sri-lankas-ceb-loses-rs4-5bn-up-to-june-84989/. live.
  2. Web site: Ceylon Electricity Board 2019 . Ceylon Electricity Board . Ceylon Electricity Board . 18 September 2021 . https://web.archive.org/web/20210918131604/https://ceb.lk/front_img/img_reports/162849515303_CEB_English_2019_AR.pdf . live .
  3. Web site: Corporate Profile. 2024-06-09. 11 May 2020. https://web.archive.org/web/20200511100227/https://ceb.lk/corporate-profile/en. live.
  4. Web site: Our Management. CEB. 20 July 2015. management. dead. https://web.archive.org/web/20150722120705/http://www.ceb.lk/sub/about/ourmanagement.html. 22 July 2015. dmy-all.
  5. Web site: 2024 Electricity Act Reforms. The Morning. 2024-06-09.
  6. Web site: Sri Lanka passes new electricity law. EconomyNext. 2024-06-09.
  7. Web site: Sri Lanka Electricity Bill Gazette. Documents.gov.lk. 2024-06-09.
  8. Web site: CEB . Home . CEB Annual report . 21 June 2018 . 10 June 2018 . https://web.archive.org/web/20180610233539/http://www.ceb.lk/index.php?aam_media=21128 . live .
  9. Web site: Demand Side Management - Ceylon Electricity Board. 20 September 2014. dead. https://web.archive.org/web/20140923110857/http://www.ceb.lk/sub/knowledge/demandside.html. 23 September 2014. dmy-all.
  10. Web site: Generation of hydro-power has decreased – observes CEB. 2 September 2014. 19 September 2014. 3 September 2014. https://web.archive.org/web/20140903155817/http://newsfirst.lk/english/2014/09/decrease-generation-hydro-power-ceb-observes/51782. dead.
  11. Web site: CEB Annual Financial Statement,2011. 19 September 2014. dead. https://web.archive.org/web/20140904021132/http://www.ceb.lk/sub/publications/annual.aspx. 4 September 2014. dmy-all.
  12. Web site: 2020-12-08. Sri Lanka's largest Wind Power Farm 'Thambapavani' added to the National Grid. 2020-12-23. Sri Lanka News - Newsfirst. en. 19 December 2020. https://web.archive.org/web/20201219120839/https://www.newsfirst.lk/2020/12/08/sri-lankas-largest-wind-power-farm-thambapavani-added-to-the-national-grid/. live.
  13. Web site: A New Coal Power Station the Coal Industry Won't Boast About. HuffPost. 15 September 2014. 19 September 2014. 17 September 2014. https://web.archive.org/web/20140917060006/http://www.huffingtonpost.com/bob-burton/a-new-coal-plant-the-coal_b_5821386.html. live.
  14. Web site: Sri Lanka suffers hours-long power blackout. The Star Malaysia, 25 February 2016. 26 February 2016. 26 February 2016. https://web.archive.org/web/20160226123522/http://www.thestar.com.my/news/regional/2016/02/25/sri-lanka-suffers-hours-long-power-blackout/. live.
  15. Web site: Sri Lanka suffers hours-long power blackout. NDTV, 13 March 2016. 13 March 2016. 13 March 2016. https://web.archive.org/web/20160313190458/http://www.ndtv.com/world-news/sri-lanka-faces-nationwide-power-blackout-water-supply-affected-1286773. live.
  16. Web site: Norochcholai out of action; power cuts to continue. Times Online. 14 March 2016. 14 March 2016. https://web.archive.org/web/20160314072422/http://www.sundaytimes.lk/97983/update-norochcholai-out-of-action-power-cuts-to-continue. dead.
  17. Web site: Cause for power failures in Sri Lanka is lack of regular maintenance - Minister. ColomboPage News Desk, 23 March 2016. 2 May 2016. 7 May 2016. https://web.archive.org/web/20160507183355/http://www.colombopage.com/archive_16A/Mar23_1458754361CH.php. dead.
  18. Web site: Biyagama CE warned CEB often. Ceylon Today, 17 March 2016. 2 May 2016. PDF. 1 June 2016. https://web.archive.org/web/20160601213757/http://lankalightnews.blogspot.ca/2016/03/biyagama-ce-warned-ceb-often.html. live.
  19. Web site: Drought, failure to raise power capacity force nationwide power cuts . 1 April 2019 . 1 April 2019 . https://web.archive.org/web/20190401104000/http://www.dailymirror.lk/business-news/Drought--failure-to-raise-power-capacity-force-nationwide-power-cuts/273-164584 . live .
  20. Web site: Load Shedding . 1 April 2019 . Ceylon Electricity Board . https://web.archive.org/web/20190331191839/https://www.ceb.lk/Load_shedding_2019.pdf . 31 March 2019 . dead .
  21. Web site: https://web.archive.org/web/20150509110822/http://www.lankabusinessonline.com/news/sri-lanka-ceb-loses-rs25.5bn%2C-debts-balloon/299306085. Sri Lanka CEB loses rs25.5bn. 18 September 2014. 9 May 2015. dead. dmy-all.
  22. Web site: Sri Lanka power tariffs raised - Update . https://web.archive.org/web/20140713023305/http://www.lankabusinessonline.com/news/sri-lanka-power-tariffs-raised---update/810023884. 20 September 2014. 13 July 2014.
  23. News: Sri Lanka cuts energy price after start of Chinese-funded coal power plant. Reuters. 16 September 2014. 20 September 2014. 7 March 2016. https://web.archive.org/web/20160307033243/http://uk.reuters.com/article/sri-lanka-economy-china-idUKL3N0RH4SO20140916. live.
  24. Web site: CEB says electricity bill reduction will not reflect immediately. 17 September 2014. 20 September 2014. 22 September 2014. https://web.archive.org/web/20140922115758/http://newsfirst.lk/english/2014/09/two-weeks-will-take-come-process-creating-electricity-bills-reflect-reduction-ceb/53990. dead.
  25. Web site: PAYE tax owed by CEB employees recovered from consumers: CaFFE . 20 May 2018 . 20 May 2018 . https://web.archive.org/web/20180520124421/http://www.dailymirror.lk/article/PAYE-tax-owed-by-CEB-employees-recovered-from-consumers-CaFFE-150124.html . live .
  26. Web site: 2022-08-07 . Ceylon Electricity Board Restructuring Committee is entrusted with the responsibilities . 2022-08-11 . en-US . 11 August 2022 . https://web.archive.org/web/20220811120851/https://www.buzzer.lk/ceylon-electricity-board-restructuring-committee-is-entrusted-with-the-responsibilities/ . live .