Un-bundling of Sri Lanka’s Ceylon Electricity Board in to multiple companies is expected to cost 10.6 billion rupees in lost economies of scale, the Ceylon Electricity Board has said in a tariff filing.

Under the pre-transition structure, when CEB functioned as a single integrated utility operating under six licenses, electricity consumers benefitted from a voluntary reduction in the legitimate Return on Assets amounting to 10.6 billion rupees within the allowed revenues of distribution licensees, in the July 2024 tariff revision.

“This benefit was made possible through economies of scale and shared operational efficiencies of the consolidated structure,” the filing said.

“With the ongoing transition, this advantage will no be available. In this context the curtailed ROA should be restored to all DLs.

The CEB has projected a revenue deficit of 23.85 billion rupees which is reduced to 13.09 billion rupees, after 10.76 billion rupees after a surplus from a previous period was brought forward.

Source- ECONOMYNEXT—-