Ceylon Electricity Board is set to retire power plants incurring high production costs within the next one and half years, Power and Renewable Energy Minister Ravi Karunanayake said yesterday.
Noting that one of the main reasons the CEB is making losses is high production costs incurred in some plants, Karunanayake said that the State-owned company should be focusing on least cost generation methods.
“We have to disconnect all the plants that have a high cost of production within one and half years. The Kelanitissa plant cost per unit is Rs. 60 and Uthuru Janani [diesel power plant at Chunnakam] cost of production is Rs. 74. We have to work towards a least cost generation system. When this is discussed politicians are always blamed for not taking straightforward decisions, I accept that. But now you have to join the change,” he said, speaking at the launch of CEB customer care app.
The CEB yesterday launched a customer care app, developed in-house by a nine-member team lead by Jagath Samarawickrama. Speaking of the skills and capacity of the Sri Lankan professionals, the Minister said the CEB has ability to meet demands made by external markets.
The Minister, who had recently visited the subsidiary company of CEB Ante Leco Meters, which manufactures electricity meters for the Sri Lankan market, said the company boasts the production capacity and quality standards to qualify for the export market.
Further, he said that the CEB should aim to secure foreign projects within the next few months and that he will be giving the company three months to meet these expectations.
“Within the next two-three months CEB has to push forward to get contracts outside of the country. Go to Maldives, Myanmar, Uganda or anywhere to lobby for projects. This is what we are trying to support. If we are told how much it will cost we will give the CEB the money. Set up a new subsidiary, CEB International Pvt. Ltd. Through that go abroad with the engineers and other workers. If the private sector can do it why not the CEB?”
“I am giving the company a challenge. In August I am coming to Ante Leco with the Prime Minister, and perhaps the President to mark dispatch of the first export order,” he said.
The Minister is confident the CEB can “transform this into the number one brand in Sri Lanka” if the company is able to cut losses. However, he attempted to justify the loss-making trend by the company as it is delivering an essential commodity to its consumers.
“The loss incurred by the CEB is not really a loss, it should be viewed as the contribution to the country. Not everything can be measured in monetary terms, that is very important. When SriLankan incurs about a 2500 to 3000 million loss bringing in tourism to the country, its ok for the CEB to be making even twice as SriLankan when CEB supplies electricity to every household in the country,” he said.
However, he insisted that the company çannot continue the trend and calls on the CEB employees to make changes, noting that they have to deliver compared to the high salaries they are paid.
“When you earn 200% to 300% more than normal people then you have a responsibility to deliver in the same way, you have to change the same way,” he noted. The Minister also advocated that the CEB should focus more on customer care and public relations.
(FT)