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Friday, October 01, 2004

Increase in cost of Thermal power By Wasantha Sujeewa

The CEB states that the cost of production of thermal power has increased with the rise of price of diesel.

Managing Director CEB, Ranjith Fonseka says that accordingly the cost of production of one unit of thermal power has gone up by Rs. 1.00 from Rs. 9.50 to 10.50 per unit. He said that this increase cannot be borne by the CEB.

Although the CEB asked the government to increase electricity charges by 5% only an of 3.8% was allowed and hence the additional annual income has increased to Rs. 1,800 million.

He further said that 60% thermal power is added to the whole electricity network and due to the increase in diesel prices the Board has to incur a heavy loss.


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