PUCSL invites external consultants to look into CEB’s financial woes

Public Utilities Commission of Sri Lanka (PUCSL) is calling for qualified consultants who could investigate the reasons for the woeful financial situation of the Ceylon Electricity Board (CEB) and to propose how to introduce reforms to the country’s largest public utility to bring in financial discipline. 

To this end PUCSL, under its Utility Financial Position and Business Model Study called bids from those who have the required competence and the capacity. The time frame for sending Request For Proposals (RFPs) ended on December 29. 

The consultant will have to, “identify the causes for the deteriorated financial position of CEB and to find strategies/actions to revive CEB finances in the medium term.” 

PUCSL, according to its law, functions as the economic, technical and safety regulator of the electricity industry in 
Sri Lanka. It is also the designated regulator for petroleum and water services industries and further acts as the shadow regulator for the lubricant industry.

There were also calls lately for the PUCSL to provide regulatory oversight to the domestic gas industry with increased cooking gas related accidents.

It was recently reported that the Ceylon Petroleum Corporation (CPC) had asked CEB to settle Rs.18 billion out of a reported Rs.91 billion in payables to the CPC to continue supplies. CPC supplies furnace oil and diesel to CEB for power generation. 

The CPC has also reportedly asked the CEB to open its own letters of credit for fuel as the country’s foreign exchange crunch has now threatened the continuity of power supply.   

The failure to settle the dues could result in the power utility to resort to power cuts as CPC is running low on fuel while the hydro capacity is also falling due to lack of rain.  

For the quarter ended September 2021, CEB generated revenues of Rs.78.93 billion, up 6.5 percent from a year ago while it reduced its net losses to Rs.1.39 billion from a high of Rs.11.57 billion in the comparable period in 2020.