News - Six companies to take over CEB functions

Six companies will take over the functions of the Ceylon Electricity Board (CEB) once the new electricity reforms Bill is passed in Parliament.

One company will take over electricity generation, another company the functions relating to transmission and bulk procurement of electricity while four distributing companies will take over the distribution and supply of electricity.

The Government referred the controversial piece of legislation as an urgent Bill to the Supreme Court two weeks ago and the Court’s determination has been forwarded to the Speaker to be announced in Parliament before it is taken for debate next month. It has been strongly opposed by the JVP and trade unions who say the Government is moving to privatize the CEB.

Under the Bill titled the Ceylon Electricity Board (Amendment) Act, a nine member board will be appointed by the minister and it will be entrusted with the task of preparing a scheme for the reorganisation of the powers, duties and functions of the CEB in consultation with the Public Utilities Commission, within one month of the coming into force of this Act.

The period of one month can be extended for another month on the direction of the Power and Energy Minister.

The objectives of the scheme are to ensure that the functions of the Board relating to the generation, transmission, distribution and supply of electricity are clearly separated and discharged by separate companies incorporated for this purpose.

The scheme will enable each proposed company to discharge its functions with the maximum independence, efficiency and economy, whilst ensuring security of electricity supply to consumers.

The Bill also offers the employees of the CEB a voluntary scheme of retirement to be worked out by the Power and Energy Minister in consultation with the Finance Minister.

It will be offered to those who do not wish to join the new companies and to those whose services are no longer required as decided by the new Board.

The retired officer will be paid compensation under the scheme and will be eligible for benefits he would have been entitled to had he been employed till his age of retirement.

A Monitoring and Advisory Committee will also be set up under the new Act which will consist of a Deputy Secretary to the Treasury, an additional Secretary to the Power and Energy Ministry and a representative each from the Ceylon Chamber of Commerce, the Institute of Chartered Accountants of Sri Lanka, the Institution of Engineers and the domestic consumer group to be nominated by the Trade and Commerce Minister.

Two other persons from the private sector with experience in business and management and who do not have any relevant interest will be appointed by the minister.

There is also provision in the new Act for the Government to make a grant to the board for a period of five years with the approval of Parliament from the Consolidated Fund.

The sum to be granted annually will be equivalent to ten per cent of the total service connection fee charged by the distribution licensees for the particular year or a sum of Rs 50 million, whichever is higher.