Government to go ahead with unbundling of CEB

By Yohan Perera and Ajith Siriwardana  

The government is set to proceed with the unbundling of the  Ceylon Electricity Board (CEB), through which 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 as stipulated in the Bill presented  to Parliament yesterday.  

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  requirements; a competitive wholesale electricity market for trading  long-term electricity supply contracts between generation and  distribution licensees; a competitive ancillary services market that  includes frequency control, reactive power services, and black start  support services. A retail electricity market will also be established.