The Central Electricity Board (CEB) is facing a significant financial crisis, marked by a record deficit of Rs 4 billion.
This dire situation has been exacerbated by failed investments in its subsidiaries and other poor management decisions.
CEB Green Energy Co Ltd has completely ceased operations, leaving a precarious financial situation, while CEB Facilities Co Ltd has had to undergo a restructuring of its services. The two entities cost Rs1.2 billion.
The CEB’s financial challenges have been further intensified by international events, including a surge in raw material prices, particularly heavy fuel oil and coal, vital for the CEB’s operations.
This has led to a substantial deficit, reaching Rs 4.1 billion for the fiscal year, marking a significant low point in the CEB’s financial history.
Despite these difficulties, the CEB remains optimistic about the future, anticipating an expansion of investments driven by major infrastructure projects, real estate development initiatives, and efforts to develop new growth segments, especially in renewable energy.
A recent tariff revision and a commitment from the Ministry of Energy and Public Utilities to disburse funds to the CEB’s pension funds aim to provide some financial relief.
The CEB’s financial reserves have also been impacted, with a significant portion transferred to the Consolidated Fund to cover various expenses, including compensation for Betamax and budgetary balancing.
In addition to the deficit of Rs 4 billion, the latest annual report also highlights a deficit of Rs 5.6 billion in the defined benefits retirement plan. However, reassurance has been provided by the commitment to disburse funds to the CEB’s pension funds over the next 18 years.
Source: Defi Media
