Power and Energy Ministry to save millions

by Shirajiv SIRIMANE

The Ministry of Power and Energy has formulated a plan to reduce their overheads by Rs. 15,000 million next year. This would be twice the amount allocated to Samurdhi Movement.

This was disclosed by the Minister of Power and Energy, Chamipka Ranawaka when he made a presentation to President Mahinda Rajapaksa on the power sector at Temple Trees on November 9.

Minister Ranawaka said that they had initially allocated Rs. 158,982m for CEB, which makes the Ministry with the highest expenditure. "Out of this Rs. 107,047m is for power generation while Rs. 16,754m was allocated for power distribution.

In addition Rs. 7,700m was left for power work maintenance and a further Rs. 3,997m for interests on credit," the Minister said. "However with new management plan we have been able to reduce this estimate by almost Rs. 15,000m," he said.

This includes the reduction of Rs. 3,391m from power generation costs, Rs, 1,065m from power distribution, maintenance Rs. 2,506m and a relief of Rs. 1,527m from interest on loans. Minister said that they have had several discussions with the top management of the CEB and was successful in spelling out with a sound economic management plan to save almost Rs. 8,450 million. The institution would be able to earn an unprecedented Rs. 5.8 billion annually with the opening of the Upper Kotmale project which was in discussion stage from 1985. The CEB had no option other than purchasing electricity generated from diesel spending Rs. 6.23 billion.With the opening of Upper Kotmale CEB would be able to generate electricity for less than Rs. 2 and would be able to save billions.

The Ministry has also intensified 'raids' on illegal electricity tapping and this too brings a huge saving to the Ministry. In addition through court fines the Ministry was able to earn millions.