A firm stance from regulators signals relief for consumers, even as billions in losses and procurement failures shake Sri Lanka’s power sector.
The Public Utilities Commission of Sri Lanka has made it clear that electricity tariffs will not be increased despite the financial strain caused by the recent coal procurement crisis.
In a strong statement, the Commission emphasized that it has not considered passing these losses on to consumers, reinforcing its commitment to protecting the public during a period of economic pressure.
A senior PUCSL official explained that the financial damage resulting from procurement weaknesses will not be transferred to electricity users under any circumstances.
He stressed that if the coal supplied is of poor quality, the responsibility lies with the supplier and other accountable parties, and not with the general public.
The official also dismissed circulating claims that power sector entities had requested a 15 percent tariff increase, calling such reports inaccurate.
He clarified that the Ceylon Electricity Board has not submitted any formal proposal seeking a tariff hike, but has only provided updated cost-related data for review.
As a result, the Commission maintains that there is no valid basis to consider any electricity tariff revision at least until mid-May.
Meanwhile, Secretary to the Ministry of Energy, Professor Udayanga Hemapala, acknowledged that while the losses cannot be immediately recovered, the power sector continues to face significant financial pressure.
He noted that the Lanka Coal Company is currently exploring options to recover part of the losses by imposing penalties on the suppliers involved.
According to the Auditor General’s findings, the direct loss linked to coal procurement issues stands at Rs. 2.24 billion, though the wider financial impact is believed to be far greater.
The Secretary revealed that switching to diesel-based power generation due to coal shortages has added an estimated Rs. 25 billion in costs.
Additionally, the National System Operator estimates that the total burden for the quarter could reach approximately Rs. 42 billion.
A special committee appointed to verify and assess these figures is expected to submit its report by the end of April.
Professor Hemapala also confirmed that a 40-day delay in coal shipments during November and December contributed to emergency purchases at higher costs, attributing the delay to procedural shortcomings.
Further concerns have emerged over the accreditation of an Indonesian laboratory that tested coal supplied by Trident Chemphar Ltd., prompting the Ceylon Electricity Board to initiate an investigation.
Despite these challenges, the government has reiterated that its policy remains focused on generating electricity at the lowest possible cost, and assured that this approach will continue moving forward.
