- Cites diesel being only one of several generation inputs
- Consumers to see benefit of lower fuel prices in next revision
In the wake of calls to reduce electricity tariffs following the recent reduction in fuel prices, the Public Utilities Commission of Sri Lanka (PUCSL) stated that an immediate tariff revision is not possible because diesel is only one of several inputs used in electricity generation. However, it assured that the benefit of lower fuel prices would be passed on to consumers during the next tariff revision.
Responding to queries from The Daily Morning yesterday (2), PUCSL’s Director - Communication Jayanat Herat said that tariff revisions are carried out under the existing pricing methodology and Government policy, which provide specific circumstances under which adjustments can be made.
He explained that the latest reduction in diesel prices alone is insufficient to justify an immediate revision. "Diesel is only one component used in electricity generation. Just because its price has fallen by Rs 20, tariffs can’t be revised immediately. Electricity generation also depends on several other sources such as coal, naphtha, and furnace oil."
Speaking further, Herat said that consumers would however receive the benefit of lower fuel prices through the next scheduled tariff revision, as all cost components would be considered when determining electricity charges. "The benefit of the fuel price reduction will certainly be passed on to the public during the next revision. All relevant costs will be taken into account before the next tariff adjustment is made," he said.
The clarification comes after the Electricity Consumers' Association (ECA) called for an immediate reduction in electricity tariffs following the latest fuel price revision. Speaking to The Daily Morning, the ECA’s General Secretary Sanjeewa Dhammika said that the PUCSL should act without delay to direct the relevant authorities to revise electricity tariffs, claiming that a significant share of imported diesel is used for electricity generation.
The calls followed the Ceylon Petroleum Corporation's fuel price revision that took effect on Monday (29), under which the price of Auto Diesel was reduced by Rs 25 to Rs 382 per litre and Petrol 92 Octane by Rs 20 to Rs 414 per litre. The prices of Super Diesel, Petrol 95 Octane and kerosene remain unchanged.
Earlier, Energy Minister Anura Karunathilaka said that the Government would not seek approval from the PUCSL for an electricity tariff increase before September. However, he noted that lower-than-expected rainfall in April had affected power generation, and said that the tariff revision for the fourth quarter of 2026 would be sought in a manner that reflects the losses incurred during that period.