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| Sunday, 1 August 2004 |
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| News Business Features Editorial
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CEB to recover Rs 26 billion loss by Hiran H.Senewiratne The Ceylon Electricity Board (CEB) is in the process of implementing a four- pronged, effective strategy to recover a Rs 26 billion financial loss,its Chairman Ananda Gunasekera said. This situation surfaced when the CEB started generating more thermal power than hydro power, due to the prolonged drought in the country, Gunasekera said. However,increase of high petroleum costs also added insult to injury. "Current circumstances kept the CEB bearing heavy loss with the increase of the country's power consumption", Gunasekera told the "Sunday Observer" Business. He said that for many months the CEB generated both thermal power and hydro power to ensure continous energy supplies to the country.The CEB along with independent power producers supply thermal power to the national grid. The government has not revised the tariff structure on power and energy since 2002 and this has also aggravated the situation, Gunasekera added . According to him the strategies that are going to be implemented to recover losses are restructuring the current debt portfolio with the assistance of Financial Managers and turning short-term debts from banks into long term debt. He also said that timely implementation of the proposed Coal power plants at Norochchole, Kerawalapitiya combined cycle power plant and the Upper Kotmale plant are part of the CEB's second strategy. Since the government has completed the feasibility study of the Norochchole power plant location at a cost of Rs 500 million, it would be the most suitable place for this purpose, the Chairman said. He also said that the implementation of a tariff policy by the government is also part of the plan and will reflect the cost of power. The government's decision to go ahead with the power-sector reforms to make the CEB a viable entity would be the fourth strategy Chairman Gunasekera said. However, ha also said that there would probably be no power cuts in the future. |
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