Sri Lanka to minimize losses with new plant

Sri Lanka hopes to minimize financial loss incurred by buying electricity from private companies with newly-fired Norochcholai power plant.

Speaking at a ceremony for the firing of the Norochcholai coal power plant boilers, Power and Energy Minister Champika Ranawaka said Sri Lanka had some 20 million electricity consumers with each of them paying about US$31.34 to cover the loss.

Sri Lanka  has incurred a loss of US$644.8 thousand since 1990 as a result of buying electricity from the private sector to make up for the shortage from government power plants.
“This is apart from what the Ceylon Electricity Board has to pay,” the Minister said and added that the Norochcholai and Upper Kothmale power plants would help minimize the financial loss incurred by buying electricity from private sector companies.

 He said the CEB had to incur a loss of US$0 .0403 on a unit of electricity even in a situation where the petroleum ministry provided fuel at a subsidized rate.

“The CEB was forced to purchase electricity from private companies at high rates because government owned power plants were unable to generate sufficient electricity to meet the country’s demand,” the minister said adding that the CEB utilized 75 per cent of its income to pay private suppliers.

He said the first phase of the Norochcholai power plant was initially scheduled to be completed by May 2012 but had been brought forward to yesterday with 300 megawatts of electricity being added to the national grid.

The minister said the CEB was planning to sell a unit of electricity at US$ 0.072 from next year onwards.

The minister said the CEB was hoping to begin the electricity generation process using coal in the by end December.