PUCSL rejects CEB proposal to increase electricity tariffs

By Chaturanga Pradeep Samarawickrama

The Public Utilities Commission of Sri Lanka (PUCSL) has decided not to increase electricity tariffs, rejecting a proposal by the Ceylon Electricity Board (CEB) to raise rates by 6.8 percent to cover a revenue deficit of Rs. 7.7 billion in the final quarter of 2025.
Addressing the media, PUCSL Chairman Prof. K. P. L. Chandralal said the CEB had later revised its proposal, seeking an increase of Rs. 20.8 billion. 
However, following staff analysis and extensive public consultations held across all nine provinces - with nearly 500 participants submitting written and oral feedback - the Commission ruled to keep the current electricity tariffs unchanged. The existing rates will remain effective from midnight tonight until the next tariff revision.
He said that five electricity tariff revisions have been implemented in 2024 and 2025, resulting in a 44 percent reduction in tariffs compared to January 2024.
In its latest decision, the Commission also directed the CEB to pass on surplus revenue earned in previous quarters to consumers. Of the Rs. 22,875 million surplus from the first quarter of 2025, Rs. 8,487 million will be adjusted to cover the current deficit, while the remaining Rs. 16,975 million will be carried forward for the tariff revision in the first quarter of 2026.
The PUCSL further imposed seven conditions on the CEB and the Lanka Electricity Company (LECO), including the preparation of cost accounts, entering into power purchase agreements, conducting a forensic audit on the Rs. 60,461 million surplus from 2024, and ensuring that profits are transparently adjusted in future tariff proposals.
Additionally, the Commission issued an enforcement order requiring the CEB to purchase fuel for power generation at competitive prices, emphasising cost efficiency in electricity generation.
Reiterating its stance, the PUCSL stated that revising electricity tariffs four times a year is not rational and pledged to take measures to maintain tariff stability going forward.
All tariff-related decisions, the Commission said, are made in accordance with the Electricity Act and the approved pricing formula, incorporating public feedback received during consultations.
For further information, the PUCSL advised the public to contact Jayanath Herath, Director of Corporate Communications, at 077 2 943 193.