CEB profit tops Rs 5,000 m for 2010

Electricity Board reaches financial stability:

Sandasen MARASINGHE

The Minister said that following this achievement, the CEB has increased the bank overdraft to a plus level of Rs 3 million.

This was in a minus rate during the last decade. He added that the CEB also has reached financial stability making it possible to settle all the payments due. The CEB has become an organization that is not making a loss.

He added that during 2000 to 2009 the CEB incurred a total loss of Rs 116,956 million which was absorbed by the Treasury or the Petroleum Corporation.

The loss in turn was passed on to the people.

Minister Ranawaka stated that the Ministry budget for the financial year 2010 was formulated on the basis that the Ministry would incur a loss of Rs 40 billion during 2010. But the Ministry was able to earn a profit of Rs 5 billion as a result of a special plan put into action.

The Minister also stated that if the Ministry incurred the loss, the treasury would have had to find finances to bridge the gap by way of taxes.

If it happened each person in this country would have to pay more than Rs 2000 indirectly as taxes to bridge the gap in addition to the electricity bills.

However the people have been relieved of this burden during the year 2010. To

Minister Ranawaka added that certain groups may claim that the profit was earned due to the rain they had during 2010. He added that it was true that there was abundant rain but the fact is that the contribution of hydro electricity to National Grid is around 47 percent. He said that the optimum contribution by hydro electricity was made in the years 2000, 2001 and 2006 but during those years the CEB could not earn profits.

The Minister stated that this achievement was made with tremendous efforts by all the staff members of the CEB,media and public.

He further stated that no body who consume electricity below 120 units could claim electricity bills are high.

The CEB sold a unit of electricity at a rate of Rs 13.10 in 2008 and at Rs 13.16 thereafter. According to the Colombo Consumers’ Price Index it is only the price of electricity that has not been increased since 2008.

The Minister also added that the Ministry has initiated a program to make the CEB a profitable organization by 2016.