• CEB cites Rs. 15.8 b revenue gap to justify hike proposal
• Past debts will not be passed on to consumers: PUSCL Chairman

The Public Utilities Commission of Sri Lanka (PUCSL) is set to announce its final determination on electricity tariff revisions tomorrow (30).

The determination will be made following a review of a proposal submitted by the Ceylon Electricity Board (CEB), which has requested a uniform tariff increase of 13.56% across all consumer categories for the April-June quarter, PUCSL Chairman Prof. Lalith Chandralal said.

Speaking to The Sunday Morning, he said that the CEB had justified the proposed increase by projecting a revenue shortfall of Rs. 15.8 billion for the period, with estimated operational costs of Rs. 136.5 billion against expected revenue of Rs. 116.9 billion under existing tariffs. 

The PUCSL is currently evaluating the submission to determine whether tariffs should be increased, reduced, or maintained.

The final decision on tariffs is expected following a meeting of commission members scheduled for tomorrow (30). The regulator has been conducting a detailed assessment of the financial data submitted by the CEB, including requesting additional clarifications where necessary.

“The proposed tariff revision is currently under active discussion within the commission. It is our responsibility to scrutinise the submitted figures carefully. We are still in the review process and have requested further clarifications from the CEB. The commission will meet on Monday, and we expect to reach a final decision at that stage,” he explained.

The proposed tariff increase has drawn public attention, particularly regarding whether historical debts and financial losses incurred by the CEB would be transferred to consumers through higher tariffs. Prof. Chandralal rejected this possibility.

“I can confidently say that past accumulated debts and historical financial deficits will not be considered or included in the calculation for the upcoming tariff revision,” he said.

Addressing concerns over potential electricity shortages linked to global fuel and coal supply uncertainties, Prof. Chandralal said that no immediate disruptions to power supply were anticipated and that the PUCSL had not received any proposal related to the matter from the authorities.

“We do not foresee any immediate risk of power outages at this moment. The stability of the grid over the coming months will depend on maintaining a continuous supply of diesel and coal, but based on current conditions, there will be no scheduled power cuts,” he said.

Speaking further, he said that global fuel price volatility linked to ongoing geopolitical tensions had added complexity to the tariff-setting process. While these external factors directly influence the cost of electricity generation, the regulator may be required to proceed without a stable medium-term outlook on energy prices.

“We have requested detailed information on the impact of rising global fuel prices. However, given the volatility of the situation, it is unlikely that we will have a fully stable forecast before making our final decision,” he noted.

He further clarified that the upcoming revision was part of the routine quarterly pricing mechanism rather than a response to recent supply-side developments.

“As part of the established regulatory framework, we carry out tariff revisions every quarter. These adjustments may result in either increases or reductions, in line with the structural benchmarks agreed with the International Monetary Fund. This is the standard revision process for the second quarter,” he said.

While the CEB has proposed a 13.56% increase, the PUCSL emphasised that the final outcome may differ following regulatory review.

“The final decision will be made collectively by the commission. We request the public to await the official announcement on Monday (30),” Prof. Chandralal added.

Concerns have been raised over a drastic increase in electricity tariffs by several parties, owing to current dry weather conditions, substandard coal, and a high dependency on diesel. With the shortage of naphtha, the power supply has become increasingly reliant on diesel-powered generation, according to officials.