The Public Utilities Commission of Sri Lanka (PUCSL) has recommended a 1.46% increase in electricity tariffs for the fourth quarter of this year (October to December), following a preliminary review of a tariff revision proposal submitted by the National System Operator (NSO).

The recommendation is lower than the 2.88% increase initially sought by the NSO, which cited a projected revenue shortfall of Rs 4.4 billion for the quarter.

According to the PUCSL, the total forecast cost of electricity supply for the three-month period stands at Rs 157.3 billion, while expected revenue from electricity sales is estimated at Rs 154 billion. A further revenue deficit of Rs 1.1 billion from the previous period has also been taken into account.

However, following its preliminary assessment, the PUCSL reduced the proposed tariff increase to 1.46% after making adjustments to generation capacity costs submitted by Electricity Generation Lanka and revising the estimated additional costs associated with the use of substandard coal during the second quarter of 2026.

The review also takes into consideration electricity generation forecasts, fuel prices, hydropower availability, renewable energy contributions, battery energy storage system costs and additional expenses submitted by Electricity Distribution Lanka.

The NSO has forecast electricity demand of 4,796 gigawatt-hours for the fourth quarter, with major hydropower expected to account for 32.34% of generation, followed by coal at 25.68% and other renewable energy sources at 28.81%.

Meanwhile, the PUCSL has initiated a public consultation process to obtain stakeholder views on the proposed tariff revision before making its final decision.

Members of the public wishing to participate in the consultation can register by calling 0770399119.