CEB Faces Scrutiny over Power Purchases amid Hydropower Surplus

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The Public Utilities Commission of Sri Lanka (PUCSL) will announce its final decision on proposed electricity tariff revisions on 17 January 2025. Public consultations will begin on 17 December 2024, allowing citizens to submit feedback on the changes until 8 January 2025. 

On December 06, the Ceylon Electricity Board (CEB) submitted its tariff proposal, which suggested continuing current rates for the next six months. The proposal aims to revise tariffs for the first half of 2025, with the changes expected to take effect from mid-January.

The previous government had suggested quarterly tariff revisions, but under the current administration, revisions have been limited to twice a year. In 2023, there were three tariff hikes, and this year, two adjustments were made.

Amid these developments, concerns have arisen over the CEB’s decision to purchase electricity from private thermal power plants despite the recent heavy rains that filled reservoirs to full capacity, ensuring sufficient hydropower generation.

 The CEB defended this decision, explaining that it was necessary to address sudden changes in the electricity dispatch order.

 Dhanushka Parakramasinghe, the CEB Media Spokesperson, denied any ulterior motives, emphasizing that the move was made to stabilize power supply, not to favor private companies. 

He further explained that hydropower generates about 50% of the country’s electricity, with coal and other sources supplementing the rest. The purchase was made in response to fluctuations in the power dispatch order, ensuring uninterrupted electricity supply.

However, the Technical Engineers and Supervisors Association of the CEB raised concerns about the timing of the purchases. 

The association’s Vice President, Nandana Udayakumara, questioned why power was bought from private thermal plants when hydropower plants and the Norochcholai coal power plant were capable of meeting the demand. 

He pointed out discrepancies in CEB’s operational records, noting that only two-thirds of the Norochcholai plant was operational at the time, and one unit was running at low capacity. 

Udayakumara demanded an investigation into the matter, citing concerns about the decision’s motives, particularly when cheaper and more efficient sources of power were available.

The CEB has pledged to release a video explaining the decision-making process to the public, aiming to clarify its stance and ensure transparency.

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