• Says proper regulation could have avoided diesel costs
• Tariff revision comes into effect today

The latest electricity tariff revision could have been avoided if the Public Utilities Commission of Sri Lanka (PUCSL) properly directed the Ceylon Electricity Board (CEB) to sign fuel procurement agreements, monitored fuel storage facilities, and ensured the implementation of long-term power generation plans, the Electricity Consumers’ Association (ECA) claimed. 

Speaking on the latest electricity tariff increase, ECA General Secretary Sanjeewa Dhammika told The Daily Morning yesterday (10), the PUCSL failed to carry out its regulatory responsibilities over several years.

He alleged that the Commission had repeatedly instructed the CEB over the past three years to enter into an agreement with the Ceylon Petroleum Corporation (CPC) regarding fuel purchases, but those directives had not been implemented. “The Commission even issued written orders on this matter, but no action was taken. Although the PUCSL has the authority to institute legal action over such failures, it did not do so. Recently, they said they would file a lawsuit, but it remains to be seen if that will actually happen,” he said. 

Dhammika also charged that the PUCSL had failed to properly assess fuel storage capacity for electricity generation or direct the CEB to improve storage infrastructure. “If there had been adequate storage facilities, fuel could have been purchased and stored at lower prices instead of buying at higher rates later.” 

He further claimed that Sri Lanka’s long-term electricity generation plan had not been properly implemented. “There has to be a generation plan to guide the establishment of low-cost power plants. However, there is no progress in implementing those projects. There is no proper short-term, annual or long-term plan being followed regarding electricity generation. The Commission should have actively monitored whether these plans were being implemented and provided the necessary regulatory guidance.” 

Dhammika went on to charge that the expansion of the renewable energy sector had not been adequately encouraged by the Government. “If renewable energy production had been expanded properly, the country would not have had to depend on diesel-based power generation. However, the Government did not take any progressive action to encourage the renewable energy sector. The PUCSL is silent on all this,” he said.

The comments came as the latest 18 per cent increase in electricity tariffs for consumers using more than 180 units comes into effect today (11). 

The PUCSL had earlier approved electricity tariff revisions for the second quarter of 2026 with effect from April 1, increasing tariffs by between 8 per cent and 14.4 per cent.

Subsequently, the National System Operator (NSO) submitted a revised electricity cost estimate to the PUCSL on April 27, seeking a further increase due to rising fuel costs linked to electricity generation.

The Government has agreed in writing to provide a Rs. 15 billion subsidy to reduce the impact on consumers.

Accordingly, the latest tariff increase will not affect 95 per cent of electricity consumers in the country, and domestic consumers using between 0 and 180 units will not face an increase.

However, the existing bill of Rs. 9,570 for a consumer using 210 units has increased by Rs. 1,760 to Rs. 11,330.

Similarly, the bill of Rs. 12,120 for a consumer using 240 units has increased by Rs. 2,210 to Rs. 14,330.

The bill for a household using 270 units is expected to increase by Rs. 2,660, while a consumer using 300 units will see an increase of Rs. 3,110.