The total revenue of CEB increased by 4.6 percent to Rs. 172.0 billion in the first eight months of 2022, compared to Rs. 164.5 billion in the same period of 2021.
The direct generation cost has doubled from Rs. 104.7billion to Rs. 209.5 billion in the first eight months of 2022, compared to the same period of 2021 due to the large price fluctuations in coal and fuel in the global market coupled with the sharp rupee devaluation.
Accordingly, the cost per unit at the selling point increased to Rs. 29.17 per KWh in the first eight months of 2022 from Rs. 17.33 per KWh in the same period of 2021.
As such, CEB has incurred a large operating loss of Rs. 108.7 billion in the first eight months of 2022, compared to Rs.1.9 billion recorded in the same period of 2021.
In the meantime, daily power cuts have been executed with the approval of the Public Utilities Commission of Sri Lanka (PUCSL) to manage the electricity demand due to the foreign exchange constraints for heavy fuel importation and non-operation of the refinery of CPC.
The generation mix has changed as hydro: thermal (fuel): thermal (coal): Non Conventional Renewable Energy (NCRE) and wind 28:19:37:16 in the first eight months of2022, compared to the generation mix of 28:18:38:16 recorded in the same period of 2021.
Having considered the adverse liquidity positions of both CEB and CPC, the General Treasury has channeled Rs. 80.0 billion to CEB up to August 2022 as an equity infusion to settle its outstanding obligations to CPC.
Despite this, the total outstanding obligations of CEB to CPC and Independent Power Producers (IPP) have again reached to Rs.148.1 billion, at the end of August 2022 due to a significant level of fuel price hike.
Further, the outstanding obligations to the state banks have increased to Rs. 168.1 billion as at the end of August 2022 due to an increase in overdraft facility and increase in borrowings.
Meanwhile, the total outstanding to the banks including project loans stood at Rs. 395.5 billion at the end of August 2022.
Considering the severe financial burden faced by CEB mainly due to the non-implementation of cost-reflective pricing formula, PUCSL as the regulator increased the electricity tariff by 75 percent on average for all customer categories with effect from August 2022