Ceylon Electricity Board no more

The main activities of the CEB will be passed on to five state owned companies as per the legislation

Distribution company, which will also be held by the Treasury, will be vested with distribution operations

By Yohan Perera and Ajith Siriwardana   

The Ceylon Electricity Board (CEB) which is a long standing state institution responsible for carrying out main functions in the power sector was pushed towards its end as the Electricity Amendment Bill which converts it into a number of state companies. was approved by Parliament yesterday. The main activities of CEB will be passed on to five state owned companies as per the legislation.  Though these companies will be state companies, the government assured that private sector will also be invited to invest in the power sector.  

Employees of CEB will be absorbed to the five companies with their consent as per the legislation.   

Accordingly power generation will be assigned to a company fully owned by the Treasury. This company, referred to as the Generation Company, will take over the assets, liabilities, and functions of the CEB according to the preliminary transfer plan outlined in the Bill.   

Hydropower generation, the Lakvijaya Coal Power Plant, Lanka Coal Company (Pvt) Ltd in Norochcholai, thermal power generation, the Mannar Thambapavani Wind Power Plant, and the Trincomalee Power Plant will fall under this company.   

The distribution company, which will also be held by the Treasury, will be vested with distribution operations as per the Bill. Lanka Electricity Company will also fall under the purview of the distribution company.   

According to the new legislation, the ‘National Electricity Market’ will comprise a competitive wholesale spot market that facilitates short-term power procurement for day-ahead and intra-day requirement. A retail electricity market will also be established.   

The second reading of the Bill was passed by a majority of 96 votes with 121 members voting for it and 25 against. SLPP and other opposition parties were not present during the time of voting. The third reading was passed without a vote.