Consumers to bear Rs. 20 bn Cyclone Ditwah damage to CEB infrastructure

CEB is likely to come under increased pressure to seek an electricity price revision - possibly at a higher rate - at the next review

Around Rs. 1 billion worth of damage had been inflicted on transmission lines, while losses to distribution lines were estimated at approximately Rs. 19 billion

Costs would not be recovered at once but phased in over time

Govt. not keen for any price revision this time 

By Kelum Bandara   

Electricity consumers are likely to be compelled to absorb the cost of nearly Rs. 20 billion in damage caused by Cyclone Ditwah to the infrastructure of the Ceylon Electricity Board (CEB), Daily Mirror learns.   

The cyclone caused extensive damage to both transmission and distribution networks. A senior CEB official told Daily Mirror that around Rs. 1 billion worth of damage had been inflicted on transmission lines, while losses to distribution lines were estimated at approximately Rs. 19 billion.   

Transmission lines carry bulk power over long distances at very high voltages, such as 132,000 kV, using large towers, whereas distribution lines deliver lower-voltage electricity over shorter distances from substations to homes and businesses through smaller poles.   

Asked whether these losses would be passed on to consumers through higher tariffs, the official said the costs would not be recovered at once but phased in over time. The CEB is required to adhere to cost-reflective pricing under the International Monetary Fund (IMF) programme.   

Electricity tariff revisions are scheduled on a quarterly basis. Recently, the CEB sought a tariff hike to increase revenues by 11.57 percent, including partial recovery of losses incurred in the previous quarter. However, the Public Utilities Commission of Sri Lanka (PUCSL) decided not to implement a tariff revision for the first quarter of 2026, citing the CEB’s failure to submit a formal proposal within the stipulated time frame.   

The Commission said the decision was taken after considering several factors, including the failure to submit a formal proposal on time, deficiencies in the original submission, and the practical drawbacks of enforcing a tariff revision involving a steep percentage increase for the limited balance of the quarter, even if a fresh proposal were to be submitted.    In a statement, the Commission said it had informed the CEB in writing in October last year to submit its tariff revision proposal for the period from January to March 2026 by November 14, 2025.   

The government, meanwhile, is also not keen to enforce an electricity tariff revision at this juncture. However, the CEB is likely to come under increased pressure to seek an electricity price revision—possibly at a higher rate—at the next review, in line with the IMF-prescribed cost-reflective pricing formula, if tariffs remain unchanged for the first quarter of 2026.