Power purchased from private plant; CEB will lose over Rs. 2.7b

By Tharindu Chaturanga

The Public Utilities Commission of Sri Lanka (PUCSL) says Ceylon Electricity Board (CEB) will lose over Rs. 2.7 billion by purchasing power from a private fuel plant in Embilipitiya.

Under emergency purchasing, the Cabinet agreed to purchase power from this power plant in 2016. The CEB signed an agreement dated 17 March, 2017, according to that Cabinet approval, which continues a monthly payment of Rs. 76 million for three years to the Independent Power Producers (IPP) as capital costs of the power plant.

PUCSL says that the CEB has already paid the power plant owner $18 million (Rs. 2.7 billion) between 2004 and 2015 as capital cost. PUCSL pointed out that this amount covers the entire investment costs of the power plant IPP.

The Government Assessor has valued this power plant at only Rs. 2.3 billion while the CEB is paying Rs. 2.736 billion to the power plant owner for the next three years.