Power Minister opposes CEB request to hike tariffs by 300%

Thursday, 9 June 2022 03:21 - - {{hitsCtrl.values.hits}}

Power and Energy Minister Kanchana Wijesekera

Claims CEB is not supporting renewable energy generation plans
Annual expenditure of CEB is around Rs. 756 b, whilst earnings are about Rs. 250 b per annum
Says CEB has collective agreement to up their salaries by 25% in 3-year breaks
Asserts high cost of generation and salaries are passed on directly to consumers as per CEB’s proposal
Insists such moves should not be entertained

By Charumini de Silva

Power and Energy Minister Kanchana Wijesekera yesterday affirmed that he will not table the Ceylon Electricity Board’s request to increase tariffs by 300% before the Cabinet as the State utility is not fully supportive of renewable energy.

Speaking in Parliament yesterday, the Minister said he cannot support the proposed increase of electricity tariffs merely to pay the salaries of senior CEB officers and to purchase electricity from diesel-powered power plants, noting that successive Governments have been pushing to initiate renewable power generation projects since 2013.

Minister Wijesekera said the proposal to increase electricity tariffs by 300% has been based on the loss of nearly Rs. 500 billion. He also revealed that the annual expenditure of CEB is around Rs. 756 billion, whilst it generates around Rs. 250 billion as revenue.

The Minister said the majority of expenses are due to salaries paid to senior officials and also due to electricity purchases made from diesel-powered power plants.

As per the Minister, to generate one unit using fuel at Lakviyajaya Plant is Rs. 41.80, Sojitz Kelanitissa Rs. 84.80, Sapugaskanda B Plant Rs. 61.56, Sapugaskanda A Plant Rs. 66.42, Barge Mounted Plant Rs. 62.14, Uthuru Janani Plant Rs. 65.52, West Coast Plant Rs. 68.20, Kelanitissa Combine Cycle Power Station Rs. 98.40, Kelanitissa GT-7 Rs. 137.60, IMW x 50 Plant Rs. 110 and Kelanitissa (frame VGT) Rs. 182.80.

He also said that to generate power via solar panels in the first seven years the cost per unit is Rs. 22 and after eight years a unit cost will drop to Rs. 15.50. Solar power generation per unit is between Rs. 20 to Rs. 35.

Minister Wijesekara also said that the CEB has a collective agreement that once every three years salaries of senior engineers are increased by 25%. “As the subject Minister, I cannot let such expenses be borne by the public,” he added. He pointed out that the CEB unions should allow renewable projects to proceed and reduce generation cost, instead of increasing tariffs to pay their own salaries.

Minister Wijesekera said such moves should not be entertained. “This has to change, and no better time to do it,” he added. The Minister said he will take all measures to amend the legislation and reduce costs.

Minister Wijesekera said he will also hold discussions with trade union representatives and other stakeholders regarding renewable power generation plans. “With no plans for renewable energy or cost reduction in generation, the high cost of salaries and generation costs are transferred directly onto the consumers,” he explained.

However, Ceylon Electricity Board Engineers Union (CEBEU) recently opposed Government decision to sign a MoU with India’s Adani Green Energy Ltd., to offer 500 MW of wind plants ignoring local developers as well as offering dollar-based tariff. Local developers too have opposed the move.

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