By Marlon Dale Ferreira
Colombo, Sri Lanka — The Power Minister Kanchana Wijesekara has disclosed the primary reasons behind the recent reduction in electricity tariffs, which have brought relief to many consumers across the nation. The announcement comes in light of the Public Utilities Commission of Sri Lanka (PUCSL) approving a significant tariff reduction of 22.5% overall.
The key factors contributing to this reduction are as follows:
- Improved Efficiency in Power Generation:
The minister highlighted the advancements in power generation efficiency as a major factor. Upgraded infrastructure and the adoption of modern technologies have enabled power plants to operate more efficiently, reducing the overall cost of electricity production. - Increase in Renewable Energy Sources:
There has been a substantial increase in the contribution of renewable energy sources, such as solar and wind power, to the national grid. These sources are not only more sustainable but also cheaper in the long run compared to fossil fuels. - Lower Global Oil Prices:
The reduction in global oil prices has had a positive impact on the cost of thermal power generation. This decrease in fuel costs has been passed on to consumers through lower electricity tariffs. - Effective Debt Management:
The government’s effective management of debts and renegotiation of power purchase agreements have also played a crucial role. By reducing the financial burden on the power sector, the government has been able to pass on the benefits to the consumers. - Government Subsidies:
Increased government subsidies to the power sector have made it possible to reduce the financial load on consumers, leading to lower tariffs.
The Minister assured that the government is committed to maintaining affordable electricity rates while continuing to improve the reliability and sustainability of the power supply. This tariff reduction, effective from midnight on July 15, 2024, is expected to provide significant economic relief, especially to low-income households and small businesses.
The PUCSL has stated that consumers who use less than 30 units of electricity per month will see a 25% reduction in their bills, with the unit price dropping from Rs 8 to Rs 6. Those consuming between 61 and 90 units will benefit from a 40% reduction, with the unit price falling from Rs 30 to Rs 18. Additionally, religious places and minor industries will also see substantial reductions in their electricity bills.
