Despite the recent increase in rainfall boosting water levels in reservoirs used for hydroelectric power generation, a significant reduction in electricity rates is unlikely in the near future, according to industry officials and union representatives.
Data from the Electricity Board reveals that as of December 1, 62.2% of Sri Lanka’s total electricity demand was met through hydroelectric power, significantly reducing reliance on costlier thermal power. This has raised public expectations for a reduction in electricity tariffs.
Sanjeewa Dhammika, Secretary of the Electricity Users’ Association, argued that electricity rates should be reduced by 35% to 40%, given the Electricity Board’s current profitability.
“The Electricity Board is now earning a profit of over 200 billion rupees. We should already be seeing the fourth quarterly electricity rate revision, but the government has not taken any action,” he stated. Dhammika also criticized the leadership of the Electricity Board, alleging conflicts of interest due to their involvement in private electricity sector ventures, which he claims could influence decisions against reducing rates.
However, D.M.A.P. Prabhat, General Secretary of the Electricity Board’s Free Employees’ Union, expressed skepticism about any substantial rate cut in the short term.
“While the current rainfall has enabled the board to offer a modest relief of about 6%, a 30% reduction is unrealistic at this stage. We are preparing proposals to be submitted to the Utilities Commission by December 6. The commission typically takes around two weeks to review them, so any potential rate reduction is likely to take effect in the last week of December or the first week of January,” Prabhat explained.
Despite public demand, it appears that only minor adjustments to electricity tariffs may occur in the coming weeks, with any significant reduction delayed for several years due to ongoing financial and structural constraints within the sector.
