In a surprising turn of events, the Public Utilities Commission of Sri Lanka (PUCSL) has proposed an 11% reduction in electricity tariffs, directly opposing the recommendation of the Electricity Board of Sri Lanka (CEB) to maintain current rates.
This proposal is outlined in a report submitted by the PUCSL for public consultation regarding the electricity tariff revision scheduled for January 2025. According to the commission, the reduction can be achieved without compromising the financial stability of the power sector.
The CEB has projected its total energy cost, which includes generation, capacity, transmission, and distribution, at Rs. 274,982 million. The board has forecasted a revenue shortfall of Rs. 38,917 million, with total revenue estimated at Rs. 236,065 million.
However, the PUCSL’s analysis, which incorporates adjustments for fuel prices and a comprehensive examination of the revenue gap, indicates that the shortfall can actually be reduced to Rs. 16,451 million. This revised figure is consistent with the possibility of implementing an 11.84% reduction in tariffs.
The tariff review process under the Sri Lanka Electricity Act, No. 20 of 2009, began with the PUCSL’s call for proposals, followed by the CEB’s submission of its tariff revision plan on December 6.
This proposal for a substantial reduction underscores the potential for economic relief to consumers amidst rising energy costs, challenging the CEB’s stance of maintaining higher rates.
