Electricity tariff

The Public Utilities Commission of Sri Lanka (PUCSL) is expected to announce its proposed electricity tariff revision recommendation on Friday, June 30. Before the announcement, the PUCSL will hold another round of public consultations on Tuesday, June 27. The decision will then be communicated to the Ministry of Power and Energy by the newly-appointed Chairman of the PUCSL, Prof. Manjula Fernando.

 

 

The Ceylon Electricity Board (CEB) has already submitted its tariff revision proposals to the PUCSL and is awaiting approval. According to Dhammika Navaratne, the CEB's spokesman and Additional General Manager (Generation), the proposed revision will benefit electricity users in the 0-90 unit category and hoteliers. The reductions suggested by the CEB were the maximum that could be provided under the current circumstances, and the board will not facilitate further decreases even if the PUCSL means any following the public consultations.

 

 

The proposed tariff revision includes a reduction of approximately 28% for domestic electricity consumers using 0-30 units and a 10% reduction for those using 31-60 units. Consumers in the 61-90 unit category will see a 7% reduction. The reduction percentages for higher consumption blocks are 5% for 91-120 units, 3% for 121-180 units, and 2% for 181 units and above.

 

 

The proposed revision also includes changes to fixed and unit charges for different consumption categories. The CEB has experienced financial losses due to the absence of a cost-reflective tariff for over ten years. The recorded losses for 2022 and January-February 2023 were significant, leading to the need for working capital from both government and private financial institutions.

 

 

CEB Chairman Nalinda Illangakoon expressed confidence that the PUCSL will approve the suggested tariff revisions, and the new tariffs are expected to come into effect from July 1. The tariff will be reviewed twice yearly, with adjustments announced on January 1 and July 1. This upcoming revision is the first review since the significant tariff hike introduced in February of this year.