Fairy Godmother

The Treasury is considering the possibility of taking on the cost of thermal electricity generation to ease the CEBs cash crunch.
CEB sources say the Treasury is now considering, among other measures, the feasibility of taking on the cost of thermal electricity generation to ease the CEBs financial difficulties.rn

rnldblquote This cost will be treated like a loan to the CEB, because the Treasury wants to avoid a subsidy situation,
dblquote said a senior CEB official.rn

rnThe cost of thermal generation comes to over Rs. 1 bn a month.rn

rnThis includes the cost of production from CEB owned thermal plants and the cost of power purchase from independent power producers (IPP).rn

rnCurrently, thermal electricity account for around 15 GWh from the 22 GWh of daily demand.rn

rnA four month average from January to April 2004 shows a 62 percent thermal contribution to the countrys electricity requirement and this is unlikely to change for some time until more rains increase the hydro contribution.rn