CEB reports turnaround performance in 3Q despite tariff cuts
- 5opn1
- November 21, 2024
- Power and energy
- CEB reports turnaround performance in 3Q despite tariff cuts
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The Ceylon Electricity Board (CEB) reported a turnaround performance in the three months through September 2024, at both top and bottom-line levels, as the state-owned power behemoth turned to black, helped by the repeatedly raised tariffs in the last two years, despite the cuts to power tariffs earlier in the quarter.
The CEB reported a revenue of Rs.126.80 billion in the July-September quarter, recording a 19.8 percent increase from the same period in 2023, even after twice cut power tariffs this year.
The CEB cut electricity tariffs by 21.9 percent on average in March this year, followed by another 22.5 percent in July, rolling back only part of the jumbo tariff hikes introduced in the middle of 2022 and in 2023, under the instructions of the International Monetary Fund, as part of its reform package sold to Sri Lanka to withdraw all forms of subsidy on electricity and also to introduce cost-reflective pricing.
This was clearly seen from the zero concessions provided to the domestic consumers in their income statement. At operating level, the power behemoth reported profits of Rs.35.24 billion, up 169.8 percent from the same period last year.The operating profits were supported largely by the Rs.16.43 billion of other incomes and gains, which shot up from Rs.4.97 billion.
