Electricity bills are also likely to increase because the Ceylon Electricity Board (CEB) is unable to absorb Saturday’s massive fuel price increase, the Power and Energy Ministry said yesterday.
Secretary M.M.C. Ferdinando told a media conference the CEB would have to bear an additional Rs.40 billion annually on top of the estimated loss of Rs.30 billion for this year.
“The maximum loss we can manage is around Rs.40 to 50 billion a year. The annual estimated loss for this year is Rs.30 billion. With the recent fuel price hike we will have to incur an additional loss of Rs.40 billion which is impossible for the CEB to absorb. We have submitted these particulars to the Public Utilities Commission of Sri Lanka (PUCSL) to decide whether the electricity rates have increased or to recommend to the Treasury to absorb the additional burden,” Mr. Ferdinando said.
He said it will take a few weeks for the PUCSL to make a decision, as the particulars were only submitted yesterday.
Mr. Ferdinando stressed that even before the fuel price hike the CEB sold power at a huge loss.
In 2010 the CEB’s expenditure was Rs.179.5 billion with a fuel bill of Rs.87 billion while the income was only Rs.146 billion which meant a loss of Rs.32 billion.
The CEB’s estimated expenditure for this year is Rs.219 billion with an estimated loss of Rs.70 billion as a result of the fuel price hike. The PUCSL will have to come up with a tariff hike or if not, a relief formula for the CEB which is not practical, Mr. Ferdinando said. (Sandun A. Jayasekera)
Please privatize all the govt institutions running at a loss. I'm sure there are capable persons around who can run these ventures profitably, reduce costs and start making money instead of always making the public pay for their inefficiencies.
pra------Dhee Tuesday, 14 February 2012 05:57 AM
what next? Electricity or Gas or essential goods?
pasha Tuesday, 14 February 2012 06:34 AM
we recruit Engineers with politician recommendation. they are struggling to operate a Coal power plant. you are asking a nuclear plant
Lanka Tuesday, 14 February 2012 06:31 AM
Result of Non Productive nation run by administration who does not have a clue and dictated by Unions who are worse.
Ramakumar Tuesday, 14 February 2012 06:38 AM
If salary of CEB's staff increased by another 200%, along with other benefits even other srilankan employed staff not receiving here, they can gain 500 % profit. don't bother of increasing Electricity bill, this is not your problem.
lucifer Tuesday, 14 February 2012 06:54 AM
Wonder of Asia
citizen1 Tuesday, 14 February 2012 07:02 AM
Well said. I second that. Fools indeed!! The country is in a chaotic state.
China Pataus Tuesday, 14 February 2012 07:06 AM
Sri Lanka is a small country and is not industrialized. Sri Lanka can manage with thermal power from coal and heavy diesel (not light diesel which is used today by the CEB). What is needed is proper management of the generation and distribution of electric power. The short cut is to privatize the CEB intelligently.
solico Tuesday, 14 February 2012 02:41 PM
what already highest in the world
China Pataus Tuesday, 14 February 2012 07:19 AM
"don't have earthquakes" . We can not even run an old fashioned coal power plant.
anura Tuesday, 14 February 2012 07:29 AM
Get ready people next in line is Gas, already essential item prices are already sky rocketing, next await higher levies and taxes on phone bills, water bills, tax on water wells and streams. tax on toilets, cats and dogs tax and finally coffin tax..
shouldn't we be looking at nuclear power plants? Both India and China have fully operational plants, I'm sure they have the expertise to build us robust plants. Furthermore, our country has very few natural disasters (the tsunami was a once in a lifetime incident) - we don't have earthquakes etc hence the probability of a nuclear cascade failure is highly remote. I really think the pros outweigh the cons, we should go NUCLEAR! Obviously some lucky government type will make Billions from the sourcing of uranium but still, we need this now!
Gayan Samarasekara Tuesday, 14 February 2012 03:28 AM
lankashantha Tuesday, 14 February 2012 03:51 AM
All the blood suckers are living in luxury.
China Pataus Tuesday, 14 February 2012 03:39 AM
This is the result of the country being run by non professionals. This the result of careless spending and waste of public funds. As we know, the war song can not be sung anymore. Now the miss management is exposed. We will have more problems in the future.
Jayantha Tuesday, 14 February 2012 03:36 AM
cut down the expenses & closely monitor the supply of electricity to private projects as once the project estimate is given by CEB it is got done half the price as far as officers kick backs are ensured.
Ariya Tuesday, 14 February 2012 03:55 AM
Nodrog Tuesday, 14 February 2012 03:55 AM
If the Govt cuts down on unnecessary spending on tamashas, foreign trips, over-staffing, over-spending and inefficiencies at the CEB, CPC, Mihin Air etc we will not have to be in this position. Nooracholai not operating is not our problem. Who are the people responsible and will be they held liable?? Easy to always pass the buck to the consumers but it's coming to a limit now with the soaring costs of living.
pasha Tuesday, 14 February 2012 04:21 AM
still they gave 30% increment
mara Tuesday, 14 February 2012 04:28 AM
Kangarro Tuesday, 14 February 2012 04:38 AM
Wow another jackpot
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.