Former PUCSL Chief predicts whopping Rs. 70 b profits for CEB in 4Q

Tuesday, 7 November 2023 00:40 - - {{hitsCtrl.values.hits}}

Attributes substantial gain to increased water levels in reservoirs surrounding plants to generate 950 GWh power
Claims PUCSL approving unit price hike led to an additional financial burden of Rs. 7,000 on electricity users
Says CEB earns Rs. 300 m monthly with nearly 100,000 monthly electricity disconnections, each incurring a Rs. 3,000 reconnection fee
Asserts CEB and PUCSL must be held responsible for electricity tariff hike, potential repercussions on economic sustainability

Public Utilities Commission of Sri Lanka (PUCSL) former Chairman Janaka Ratnayake said the Ceylon Electricity Board (CEB) is set to record profits exceeding Rs. 70 billion for the last quarter of 2023.

Making startling claims regarding the profit projections he said in October alone, the CEB recorded a profit of Rs. 18 billion.

He attributed this substantial gain to a combination of factors, including increased water levels in reservoirs surrounding power plants, which resulted in an energy production of 950 GWh.

However, Ratnayake expressed concern over the decision to hike the unit price from Rs. 18 to Rs. 50 amidst such favourable conditions, claiming it to be an erroneous move.

“The PUCSL’s approval of the unit price increase had led to an additional financial burden of Rs. 7000 on electricity users,” he claimed.

He also estimated that an additional profit of Rs. 28 billion would be generated in November, with a projected profit of Rs. 22 billion in December, ultimately culminating in a total profit of Rs. 70 billion by the end of the year.

The former PUCSL Chief raised serious allegations against both the CEB and PUCSL, contending that they must take responsibility for the hike in electricity tariffs and its potential repercussions on economic sustainability.

“SMEs to large-scale industrialists are today weighed down with the exorbitant electricity bills. Most of them are relocating factories in other countries against the high production costs, where electricity acts as a major cost component,” he explained.

He cited data indicating over 100,000 monthly electricity disconnections, each of which incurs a Rs. 3000 reconnection fee, resulting in a monthly earning of Rs. 300 million.

Ratnayake accused the CEB of prioritising financial gain over consumer welfare, deeming this practice as legally and policy-wise unsound.

He also criticised the current leadership of the CEB and PUCSL, claiming that they lack the necessary expertise to make informed decisions regarding forecasts and financial matters.

He pointed out that these allegations raise concerns over the transparency and legality of the CEB’s financial practices.