• New tariffs in June

The Ceylon Electricity Board (CEB) is currently drafting a proposal for the revision of electricity tariffs, expected to be submitted to the Public Utilities Commission of Sri Lanka (PUCSL) this month and implemented in June, according to sources.

Power and Energy Ministry Secretary Dr. Sulakshana Jayawardena told The Sunday Morning that once the proposal was submitted, the PUCSL would determine the tariffs based on data provided by the CEB.

When asked whether the new tariffs would come into effect from 1 June, the Secretary stressed that it was difficult to comment since the process was still ongoing. 

“We don’t know whether the tariffs will come into effect exactly from 1 June, but the CEB is currently preparing a proposal calculating its expenses,” he said.

He cautioned that the exact implementation date in June was uncertain as the process was still underway.

Originally planned for 1 January, the tariff revision was postponed to February and then to March, with the aim of accommodating a significant 18% tariff reduction.

The CEB has reportedly adjusted its financial strategy, deferring essential renovations and projects to achieve this reduction.

In October 2023, various sectors faced tariff increases, with the domestic and religious sectors seeing an 18% rise, industries and hotels experiencing a 12% increase, and the general purpose and Government buildings sectors witnessing a significant 24% surge.

Following public consultations by the PUCSL in March, the CEB is reviewing its capital expenditure for asset rehabilitation to explore further relief in electricity tariffs.

Responding to demands for additional tariff reductions, the board is reconsidering its spending on asset rehabilitation, potentially delaying it until the next fiscal year or beyond.

This revision follows the third electricity tariff revision on 21 October 2023, which resulted in an 18% increase in tariffs.