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Ceylon Electricity Board for the Year 2010

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Ceylon Electricity Board for the Year 2010 About Us The Ceylon Electricity Board (CEB) is a corporate body CEB is located in some of the most scenic and establish in terms of Parliament No.17 of 1969 as the salubrious locations in the country. As such, the successor to the Department of Government Electrical environmental dimensions imply a mandatory Undertakings. It is a national institution charged with requirement that the activities of the CEB should the responsibility of generating, transmitting and maintain a clean, green and sustainable environment. distributing electrical energy to reach all categories of consumers nationwide. As a national body serving a The affordability criteria highlight two aspects, firstly very vital function, revenue is collected according to a that the supply of electrical energy should be within the government approved tariff structure. reach of the people of our country at an affordable price irrespective of where they live, so that the people To carry out its role, the CEB has acquired a large base could make use of it to facilitate socio economic of physical assets, including generating stations, development. Secondly, our planning process, substation complexes, transmission lines and implementation strategies, distribution methodologies distribution networks located in all parts and r evenue collection activities should be geared to of the country. It also has a significant human resource provide electricity at an affordable price to the customer base to operate, maintain and plan the system. while ensuring that all these processes guarantee the availability, reliability and quality of the product while It is the responsibility of the CEB to make optimal use of adhering to acceptable environmental norms. the physical and human resources available through the application of pragmatic and time tested managerial This poses a major challenge to all the employees of the tools and methods taking into account the ultimate CEB to function with great commitment and zeal to objective of the CEB to achieve its goals. discharge their duties at optimal efficiency and cut down waste. It is also important to realize that we It is the duty of the CEB to provide reliable electricity to should be able to generate sufficient funds to the entire nation at internationally competitive prices successfully meet the aforementioned objectives and effectively and efficiently through a meaningful indeed to adequately meet the development needs of partnership with skilled and motivated employees using the future. appropriate state of the art technology for the socioeconomic development of the country in an economically sustainable manner while meeting acceptable environmental standards and a satisfactory rate of return on investments. The availability, reliability and quality dimensions highlight the degree to which the CEB should orient its functions to the satisfaction of the customer and to serve the Nation. These are also the major concerns of the commercial and industrial sectors which have to be internationally competitive in order to provide employment opportunities and contribute to the economic and social development of our people and of our country. Much of the physical infrastructure of the Contents 9 Corporate Information 12 2010 in Perspective 18 Organization Chart 20 Chairman's Review 22 General Manager's Review 26 Operations Review 32 Generation Division 35 Transmission Division 44 Projects Division 55 Distribution Division 01 74 Distribution Division 02 88 Distribution Division 03 96 Distribution Division 04 104 Asset. Management & Centralized Services Division 112 Finance Division 114 Financial Review 118 Consolidated Income Statement 119 Consolidated Balance Sheet 120 Group Statement of Changes in Equity 124 Consolidated Cash-flow Statement 125 Notes to the Financial Statements 162 Auditor General's Report 177 Replies to the Auditor General's Report The Vision Quality Enrich Life through Power Service to the nation The 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: Efficiency and effectiveness Quality Service to the nation Commitment Efficiency and effectiveness Commitment Safety Professionalism Safety Sustainability Professionalism In June 2010, the Ministry of Power and Energy announced a fifteen-point Agenda for the Ministry, which also aimed at realization of the mission of the Board. The relevant programmes from this Agenda are described below. Sustainability CEB Annual Report 2010 5 Enrich life th 1 Nanwamu Lanweema Under this initiative by the Ministry of Power and income groups and for those who receive Samurdhi Energy, Ceylon Electricity Board will be revamped to be benefits. A loan up to Rs. 30,000 is provided by CEB to a financially stable and technically sound entity within meet the cost of the connection, which will be the next 5 years. It is planned to generate new revenue recovered through the monthly electricity bill in 60 streams, minimize expenditure, improve efficiency, instalments. eliminate any corruption, meet operational costs and reduce debt. Ceylon Electricity Board intends not to be a burden on the national economy, and be a capable 4 Grama Shakthi entity, proud of it's achievements and respected by the Renewable energy technologies will be set up in rural public. and other locations, where the extension of the national grid would not be feasible economically. All off-grid households will be provided with an option of 2 Vidulamu Lanka renewable energy generation to reap the benefit of The aim of this program is to ensure that every electricity by 2012. This programme is in the primary Sri Lankan will have access to Electricity by 2012.This purview of Sustainable Energy Authority, and the CEB program will work towards developing infrastructure Transmission Division and the Distribution Divisions will and facilities in remote locations to have access to the provide the information required for this programme to national grid or to find alternative means of power the Sustainable Energy Authority. generation, enabling every household in Sri Lanka to have an electricity supply. This will increase productivity and immensely improve the living standards of 12% of 5 Viduli Saraya Sri Lankan population, who currently do not have A dynamic and customer oriented National Consumer electricity in their households. Under this program, Call Centre will be in operation to handle all inquiries, before the end of year 2012, majority of the villages in support services, customer support and breakdown Sri Lanka would have electricity from the national grid. reporting. This is developed to provide customers with a During the next two years 4,593 rural electrification reliable and efficient service to the consumers. The Call projects are planned for, and will be completed in order Centres would include voice recording facilities and the to fulfil this target. Any remaining villages would have back office support. In addition Divisional Distribution electricity through the off-grid solutions under the Control Centres, monitoring execution of the services, Grama Shakthi Program. additional breakdown repair vans and new consumer service centres will be established. A new website will also compliment the Viduli Saraya programme. CEB has 3 Viduli Athwela already established short-code telephone number 1987 Under this program, CEB will take steps to support low for the consumers to make complaints related to their income households through micro financing to obtain electricity supplies. The call centre of CEB which was in connections to the national grid. A concessionary micro operation since 2006 is now connected to this number financing scheme is formulated for those who need and customer complaints are handled more efficiently electricity, but cannot afford the high connection costs, by co-ordinating all customer service centres in Sri Lanka to be financed and provided with connections to enjoy through this Call Centre. the benefits of electricity. A loan scheme has been already been introduced by CEB. This has been especially directed towards the low 6 CEB Annual Report 2010 rough Power 6 Jana Balaya 9 Sampath Seva In order to protect the rights of the consumers and to A new Division was created in September 2010, to take cover all consumer categories, a network of Consumer care of the assets of the CEB, so that the maximum Service Societies will be established by 2012. Many benefit is obtained from these assets. This Division will Consumer Service Societies had been established in provide other services to the public and the businesses Divisions for each of the Consumer Service Centres, so that these assets are utilized to the maximum, thus with a view to provide an important interface between generating additional revenues to CEB. the consumer and us. 10 Lanka Jananee 7 Jana Hitha Through the establishment of a state-owned subsidiary, Under this program, CEB will take steps to achieve fair, CEB expects to utilize local engineering skills to develop affordable and conservation-friendly consumer tariff. and expand the transmission network and to develop CEB and the Public Utilities Commission of Sri Lanka new renewable energy sources such as Wind Power, (under whose purview such tariff determinations are) Biomass, Solar, Dendro, Wave Power etc. This will had been in consultation in relation to the tariff enable local engineers to explore new opportunities and structures of various consumer categories. 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