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Downloaded Remotely CONTENTS OUR VISION, MISSION & CORE VALUES ........................................... 2 OUR ENVIRONMENTAL POLICY ......................................................... 3 HIGHLIGHTS OF THE YEAR ................................................................... 4 CORPORATE INFORMATION ................................................................ 6 ORGANIZATION CHART 2016 ............................................................. 8 CHAIRMAN’S REVIEW ............................................................................. 12 GENERAL MANAGER’S REVIEW .......................................................... 15 CEB TRANSMISSION NETWORK ......................................................... 17 OPERATIONAL REVIEW .......................................................................... 18 GENERATION DIVISION ...................................................... 18 TRANSMISSION DIVISION .................................................. 29 DISTRIBUTION DIVISIONS ................................................. 42 PROJECTS DIVISION ............................................................. 58 ASSET MANAGEMENT DIVISION..................................... 66 CORPORATE STRATEGY DIVISION .................................. 73 FINANCE DIVISION ............................................................... 84 FINANCIAL REVIEW ................................................................................. 86 REPORT OF THE DIRECTORS ............................................................... 87 CONSOLIDATED INCOME STATEMENT ............................................ 89 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .................................................................. 90 STATEMENT OF FINANCIAL POSITION ............................................ 91 STATEMENT OF CHANGES IN EQUITY - GROUP .......................... 92 STATEMENT OF CHANGES IN EQUITY - THE BOARD ................. 94 CONSOLIDATED STATEMENT OF CASH FLOWS .......................... 96 NOTES TO THE FINANCIAL STATEMENTS ....................................... 97 AUDITOR GENERAL’S REPORT ............................................................ 146 REPLIES TO THE REPORT OF THE AUDITOR GENERAL .............. 157 ABBREVIATIONS ....................................................................................... 173 OUR VISION Enrich Life through Power OUR MISSION To develop and maintain an efficient, coordinated and economical system of electricity supply to the whole of Sri Lanka, while adhering to our core values: OUR CORE VALUES Quality Service to the nation Efficiency and effectiveness Commitment Safety Professionalism Sustainability OUR ENVIRONMENTAL POLICY CEB will manage all its business activities in a manner, which cares for the natural and manmade environment and contribute to sustainable development. By means of openness in dealing with environmental issues, we intend to create confidence in our activities on the part of the public, customers, authorities, employees, and owners. We will actively pursue a policy of incorporating and integrating environmental considerations into our activities. HIGHLIGHTS OF THE YEAR Contribution to the National Economy: The total electricity sales (including Sales to LECO) during the The Sri Lankan economy continues its growth momentum driven year increased from 12,785 GWh in the preceding year to 13,431 by the improved physical infrastructure including electricity. GWh resulting in a rate of increase of 5.1%. The average daily In year 2017, usage of electricity was recorded a remarkable consumption of electricity in the year was 36.8 GWh as against growth of 5.1% when compared to the previous financial year. 34.9 GWh in the previous year. The industrial Sector has recorded a growth of 4.6%. The General Purpose Category and the Hotel Sector have followed a growth Sales by Tariff - 2017 of 7.8% and 10.0% respectively. Street Lighting 1% Electrification of Households By the end of the year, 5,425,060 of the households in the Government 1% country had been provided with electricity. The average per LECO capita electricity consumption which was at 603units (kWh/ 12% person) at the beginning of the year had reached 626 units by the end of the year recording an increase of 23 units. DOM+RP Industrial 33% 30% System Energy Losses The system energy losses which have been gradually decreasing General Purpose during the past decade, stood at 9.08% by the end of the year. 21% Hotel 2% System Energy Losess 25 The highest energy consumption was by the consumers in the 20 19.2 18.44 17.27 category 'Domestic and Religious Purpose' accounting for about 16.58 17.11 15.67 14.99 15 14.59 33% of the total consumption. This was followed by the industrial 12.97 11.70 11.24 11.24 10.91 10.00 sector which accounted for 30% of the total consumption. The 10 10.28 9.08 Percentage electricity consumption by consumers in the general purpose 5 category was however only 21% of the total consumption 0 indicating an annual growth of 8%. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue Consumer Growth The total annual revenue from electricity sales which stood at Rs. The total number of consumers stood at 6,193,131 by the end of 206,811 million in 2016 increased to Rs 218,450 million during the year indicating an annual growth rate of 3.8%. The numbers the year 2017 recording a growth of 5.6%. of consumers coming under different types of categories are given below: Revenue by Tariff - 2017 Category Number of Number of Customers as at Customers as at Government 31/12/2016 31/12/2017 2% Domestic 5,243,433 5,425,060 LECO 12% Religious 36,382 37,999 DOM+RP General Purpose 623,694 667,062 27% Industrial 58,381 60,694 Industrial Hotel 498 507 27% General Government 1,804 1,807 Purpose Total 5,964,192 6,193,129* 30% * Excludes LECO & Street Lighting The number of new electricity connections provided during the Hotel year was 228,937 indicating in an average addition of 19,078 2% new customers per month. Revenue from Electricity Sales Electricity Sales 16,000 250,000 218,450 13,431 206,811 14,000 12,785 194,147 202,645 11,786 200,000 188,684 12,000 11,063 10,474 10,621 163,513 9,268 10,023 10,000 150,000 132,460 121,862 8,000 GWh 100,000 6,000 Million Rs. 4,000 50,000 2,000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 CEYLON ELECTRICITY BOARD 4 Annual Report 2017 HIGHLIGHTS OF THE YEAR (CONTD.) The highest revenue was from the General Purpose customers Electricity Generation Sources followed by Industrial Sector customers (27%). The contribution Due to drought condition during the year, the hydro power to the total revenue from the customers coming under the plants including mini hydro plants could contribute only 27% to category 'Domestic with Religious' was 27% the total power generation in the year. This was a decrease of 5% from what they contributed in the year 2016. Total Energy Storage The year 2017 commenced with a total hydro storage of 473.9 GWh. This was 37.68% of the total storage of 1257.6 GWh, and 2016 56.5% reduction compared to storage at the beginning of the preceding year. The total inflow received during the year was Wind 2.4% 3,513.1 GWh. The lowest storage recorded was 343.2 GWh on Others 0.5% 23-05-2017. IPP Oil Mini Hydro (IPP) 5.2% 15.2% Year 2017 had one of the lowest recorded inflows due to the CEB Oil failure of South - West monsoon and North - East monsoon. 16.6% However, around 2000 GWh was received during the period Major Hydro from September to December due to several atmospheric 24.5% Coal disturbances. The maximum average daily inflow of 18.5 GWh 35.6% was received during the month of October. The inflow received from July to December was 2416.3 GWh which is 68.8% of total inflow of the year. Therefore, at the end of the year, the total storage had increased to 917.6 GWh. Gross Energy Generation 2017 Others 1.0% Wind 2.5% 16,000 14,249 14,773 14,000 13,154 12,423 11,528 11,801 11,962 12,000 10,714 10,000 8,000 Major Hydro GWh 6,000 IPP Oil 20.8% Mini Hydro 6.4% 4,000 17.0% 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 CEB Oil Coal 17.6% 34.7% By the end of the year, the total electricity generation had increased by 4%, i.e. from 14,249 GWh in 2016 to 14,773 GWh in 2017. The thermal power stations contributed 69.3% to the total Maximum Demand generated power in 2017 as against 67.4% in the preceding year. Maximum Demand Electricity Generation by Ownership 3,000 It is noted that the Independent Power Producers (Mini hydro 2,523 2,453 and Thermal) has generated electricity 27% of the annual total 2,500 2,283 2,163 2,146 2,164 2,152 1,955 generation in the year 2017 as against 23% in the preceding year 2,000 (2016). 1,500 MW 1,000 CEB IPP 500 90% 80% 77% 0 80% 74% 73% 2010 2011 2012 2013 2014 2015 2016 2017 69% 70% 60% 57% 60% 51% 49% 50% 43% 40% 40% The Maximum Demand reached 2,523.2 MW in the year 2017 31% 26% 27% 30% 23% which was a 70.3 MW or a 2.9% increase from 2,452.9 MW in the (%) Percentage 20% year 2016. 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 CEYLON ELECTRICITY BOARD Annual Report 2017 5 CORPORATE INFORMATION Legal Form Corporate Management The Ceylon Electricity Board (CEB) is a body corporate established in Sri Lanka by the Act of Parliament No. 17 of 1969 amended by Additional General Manager (Generation) Act Nos. 31 of 1969, 29 of 1979, 32 of 1988 and 20 of 2009. Eng. D. Thilakasena Members of the Board Additional General Manager (Transmission) Eng. P.L.G.Kariyawasam (from January 05, 2017) Chairman
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