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Blackout losses may be passed on through tariffs

Blackout losses may be passed on through tariffs

21 Oct 2026 | BY Buddhika Samaraweera


  • Minister says consumer losses cannot be quantified
  • Govt rejects link between coal quality and Norochcholai breakdown


Energy Minister Anura Karunathilaka yesterday (20) indicated that losses incurred by electricity sector companies including the National System Operator (NSO) Private Limited following the nationwide power outage on 17 October would be reflected through electricity tariffs, but that the losses suffered by consumers could not be calculated.

Responding to a question by New Democratic Front Opposition Parliamentarian Ravi Karunanayake in Parliament about the financial impact of the blackout including on the NSO and other electricity sector companies in Parliament yesterday (20), he said: “When a loss of this nature occurs, the NSO generally reflects it through tariffs. However, it is not possible to calculate the losses suffered by consumers.”

Karunanayake also asked what action would be taken over damage to electrical appliances and what compensation would be paid to the affected consumers. In response, Karunathilaka said: “The Public Utilities Commission of Sri Lanka (PUCSL) is the body responsible for regulating this matter. It is dealing with the issue, and the relevant action will be taken in line with the criteria that it has issued."

The nationwide outage on 17 October began at around 11.45 a.m. and resulted in a total failure of the electricity system. Power was gradually restored across the country, with supply returning to most areas by around 7.50 p.m. The NSO attributed the failure to severe instability in the transmission network. Karunathilaka previously said that a technical issue detected at a hydropower plant in Kotmale may have contributed to the system becoming unstable.

Furthermore, NSO Chairperson Pradeep Priyadarshana said that the Company launched an internal investigation to establish the sequence of events and identify the causes of the outage. A formal report, including recommendations to prevent similar incidents, is expected to be submitted to the PUCSL and the Energy Ministry within one month.

Meanwhile, Cabinet Spokesperson  Nalinda Jayatissa has rejected claims that the use of substandard coal at the Lakvijaya Power Plant in Norochcholai led to the need for power cuts. Speaking at the weekly Cabinet media briefing held yesterday, he said that the Plant’s Generator Number One had been shut down for maintenance for 61 days, from 30 July until 4 September, and that newly imported coal had been used at the Plant from 4 September onwards. Accordingly, he dismissed allegations linking the generator’s shutdown to the quality of coal used at the Plant. He noted that generator outages at the Plant had occurred from time to time, but said that the latest incident should not be attributed to coal quality without considering the maintenance period.  Jayatissa also said that an internal investigation is underway to determine the circumstances surrounding the breakdown of Generator No. 1.  Jayatissa expressed hope that the unit would return to normal operation after today (21), adding that the findings of the ongoing inquiry would help clarify the cause of the breakdown.



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