CEB cuts losses substantially on solid demand for power up to April

The Ceylon Electricity Board (CEB) was able to cut its losses significantly during the four months ended in April 2021 as demand surged for power with economy returning to normalcy, while the generation mix tilted slightly towards less expensive non-thermal sources. 

CEB’s revenue rose by 20 percent during the four-month period to Rs.80.5 billion from the same period in 2020, as the demand for electricity surged before the lockdown-likely restrictions came back in the latter part of April.

As a result, the State utility managed to significantly cut losses to Rs.7.5 billion in the four months compared to a whopping Rs.26 billion loss recorded in the same period in 2020. 

The benign financial performance was also made possible by the favourable change in the generation mix from a thermal-heavy one to a less thermal-heavy one between the two periods while non-conventional renewable Energy (NCRE) sources also made an higher contribution. 

For instance, the generation mix which makes up of hydro, fuel based thermal, coal based thermal and NCRE changed from 19:34:40:7 to 18:29:44:9 between the two period in 2020 and 2021. 

As a result the cost per unit at the selling point declined to Rs.18.29 per Kwh during the first four months in 2021 from Rs.23.74 per Kwh in the corresponding period in 2020. 
As a result of the improved financial position, the total payables to the Ceylon Petroleum Corporation and to other independent power producers declined to Rs.126.9 billion from Rs.133.4 billion in December 2020. 

Meanwhile, the total outstanding obligations including project loans stood at Rs.371.3 billion by the end of April 2021 while the total outstanding to State banks due to working capital loans stood at Rs.107.2 billion. 

CEB now comes under constant public scrutiny due to mandatory disclosures of its quarterly financial performance and other disclosure requirements as necessitated by the Colombo Stock Exchange after it issued listed bonds in April this year to raise a mammoth Rs.20.0 billion to settle the outstanding to independent power producers and the Ceylon Petroleum Corporation.