- PUCSL rejects CEB on grounds of delayed submission of flawed proposal and econ. disadvantage of high % change
The Public Utilities Commission of Sri Lanka (PUCSL) has decided not to implement an electricity tariff revision for the first quarter of this year (2026), citing the failure of the Ceylon Electricity Board (CEB) to submit a formal tariff revision proposal within the stipulated timeframe.
In a statement issued yesterday (14), the PUCSL stated the decision was made considering several factors, including the late submission of the proposal, deficiencies identified in the original submission, and the potential drawbacks of introducing a tariff revision for only the remaining part of the quarter. It added that implementing a revision for a short period, even if a corrected proposal were to be submitted by the CEB now, could result in relatively high percentage changes in tariffs, with possible negative consequences for the national economy.
According to the PUCSL, the CEB had been directed to submit a tariff revision proposal for the period from January to March 2026 by 14 November of last year (2025). "This directive was communicated in writing in October 2025 to ensure sufficient time for regulatory review and required procedures. However, the CEB submitted its proposal only on 29 December 2025. Following a review of the submission, the PUCSL informed the CEB on 5 January 2026 that the proposal contained several errors and requested a corrected version to be submitted by 8 January 2026. On that date, the CEB informed there would be a further delay in submitting a revised proposal. As of now, the PUCSL has not received a corrected submission."
The PUCSL observed that even if a revised proposal were to be received and approved after review and public consultations, it could only be implemented for the final part of the first quarter. Adjusting income and expenditure estimates over such a short period, the PUCSL warned, could lead to sharp tariff changes that may have a harmful impact on the economy. Taking into account the situation, the PUCSL stated that it decided that no electricity tariff revision would be implemented for the first quarter of 2026. It has further directed the CEB to submit its proposal for the second quarter tariff revision on or before 13 February 2026.
Meanwhile, the Electricity Consumers' Association (ECA) had earlier requested the PUCSL to reject the proposed 11.57 per cent electricity tariff increase for the first quarter, citing several concerns over the data, methodology, and compliance with regulatory directives.
In a letter addressed to the PUCSL Chairperson and Director General, the ECA General Secretary, Sanjeewa Dhammika alleged that several assumptions in the proposal appear inaccurate at first glance. As an example, he said that reservoir water levels have been presented as being at their lowest in history, a claim he described as misleading and inconsistent with actual conditions. The ECA also claimed that a profit of Rs. 16 billion recorded by the CEB in the third quarter of last year has not been reflected in the proposal.
Opposition Leader Sajith Premadasa has criticised the newly proposed electricity policy of the National People’s Power Government, stating that it unfairly impacts both consumers and the renewable energy sector, while disproportionately affecting low-income earners. In a social media post, Premadasa expressed concern over proposals to charge consumers for street lamps and the introduction of a time of use method, where one unit of electricity would be charged at Rs. 67. He described these measures as “blatantly unfair” and warned that resistance to paying for street lamps could have adverse effects on law and order.