High Power

Jan. 29 (LBR) – Electricity generation costs are likely to jump by 20 percent to around Rs. 11.00 a unit once an expensive diesel plant comes on line next year to shore up the crisis riddled energy sector according to an expert. Jan. 29 (LBR) – Electricity generation costs are likely to jump by 20 percent to around Rs. 11.00 a unit once an expensive diesel plant comes on line next year to shore up the crisis riddled energy sector according to an expert. Monopoly electricity supplier Ceylon Electricity Board (CEB) is planning to commission an expensive 300 MW diesel power plant at Kerawalapitiya to tide through till two critical power plants, one a hydro and the other a coal plant, join the grid.

A unit of electricity currently costs the CEB around Rs. 9.50 before taking in to account debt service costs and depreciation.

A cost increase will automatically increase pressure towards a price hike of the already expensive utility.

An electricity unit selling at an average Rs. 7.70 now actually costs around Rs. 9.50 to generate, before accounting for long term debt service and depreciation at the CEB.

A former CEB generation planner Tilak Siyambalapitiya projects the extra 300MW in diesel generation will add 20 per