• CEB’s proposal to increase electricity tariffs by 229 % is rejected - capping off tariff hikes at 75%  
• 50 % of the price increase for tourism sector will be implemented after 3 months   
• 1.5% discount on electricity bill payments in dollars  
• Conditions to ensure fairness and transparency in electricity charges

By Chaturanga Samarawickrama  

The Public Utilities Commission of Sri Lanka (PUCSL) yesterday granted permission to increase the electricity tariff by 75 % from today, PUCSL Chairman Janaka Rathnayake said.  

Addressing the media he said, the category with consumption less than 30 units will be charged 25 % of the cost. They still get 75 % of subsidy. Consumers that come under the category of above 31 units and below 60 units are charged 40% of the total cost. They get a 60% of subsidy. Only 50% of the actual cost is charged from the category of units above 61 and below 90. A 50% of subsidy is also given to that category.   

“75 % of the electricity consumers are still being subsidized even with the new tariff revision. Steps have also been taken to encourage electricity consumers to promote renewable electricity generation with the tariff revision decision. During the public consultation on the tariff revision, the users of solar systems pointed out that charging a monthly fee on their overall consumption is unfair,” the Chairman said.  

With the increase in the cost of electricity generation, the Ceylon Electricity Board (CEB) had submitted two proposals to the PUCSL to increase the tariffs by 183% and 229%. However, both proposals were not approved. As per the provisions of the PUCSL Act, we have also sought public inputs before approving the tariffs.   
The Commission decided to approve a fair electricity tariff, taking all these public and other stakeholder comments into consideration.   

“During these 9 years, the prices of all goods and services have increased considerably. Especially the three types of fossil fuels imported for electricity generation have increased by more than 250%. But in the last 9 years, we managed to keep the electricity rates at a stable level.   

“During the past nine years, the value of the dollar has increased by 190%. Therefore, the industries in the export sector will not be greatly affected by this electricity tariff revision,” Rathnayake said.  

Instead of the 116% tariff increase proposed by the CEB for industries, hotels and general-purpose sectors with low electricity consumption will get an approved tariff increase of 39% for the public sector and a 75% for the industrial sector. Only 50% of the increase in the approved rates, especially for the tourism sector, will come into effect in August 2022, he said.   

The remaining 50% tariff increase will come into effect after another three months as an incentive and relief, facilitating the tourism industry to recover. In addition, it has been decided to provide a 1.5% discount when electricity bills are paid in dollars as a relief to the tourism and export industries,” Rathnayake added.