The Ceylon Electricity Board (CEB) has submitted a proposal for a potential electricity tariff revision to the Public Utilities Commission of Sri Lanka (PUCSL) as part of its third quarterly review for 2024. This proposal, which is set to be discussed in December, is expected to result in an average increase of 6% across all consumer sectors, including residential, commercial, and industrial users.
Jayanath Herath, Director of Corporate Communications at the PUCSL, noted that the board initially considered a range of reductions between 4% and 11%. However, due to various factors affecting the energy sector, including rising operational costs and fluctuations in fuel prices, the current proposal suggests a more moderate increase of 6% instead. This adjustment follows two significant tariff changes that have already taken place this year: a substantial increase of 21.9% in March, affecting all segments of electricity consumers, followed by a reduction of 22.5% in July aimed at alleviating some financial burdens on consumers.
The proposal is currently under review by the PUCSL, and once the review is complete, it will enter a public consultation phase. This phase allows stakeholders and consumers to voice their opinions and concerns regarding the proposed tariff increase, ensuring transparency and accountability in the decision-making process. Herath highlighted that if the PUCSL identifies any need for further amendments to the proposal, the CEB will have an opportunity to address these during a scheduled meeting on Monday. This interaction between the PUCSL and the CEB is part of the regulatory framework designed to justify tariff adjustments in the best interest of consumers.
The proposed increase comes amid various challenges faced by the electricity sector, such as rising fuel costs that impact the CEB, increased costs of fuel used for power generation, and the necessity of ongoing investment in upgrading aging infrastructure to maintain a reliable electricity supply. Additionally, the CEB has been grappling with significant debt levels and financial sustainability concerns, necessitating adjustments to tariffs to ensure ongoing operations.
As consumers prepare for the potential tariff increase, reactions are expected to vary. While some may understand the need for adjustments in light of operational costs, others may express concerns about the financial impact, particularly amid rising living costs. The CEB’s proposal and the subsequent review process will be closely monitored by stakeholders, including consumer advocacy groups and political representatives, as the outcomes could have significant implications for the broader economy and energy policy in Sri Lanka.
