Proposed electricity tariffs still lower than early 2024 rates, CEB claims

Although electricity tariffs are expected to rise under the proposed new revision, the rates will still be lower than those at the beginning of this year (2025), according to the Ceylon Electricity Board (CEB).

This was stated by the CEB in a background statement issued following the submission of its proposal for the electricity tariff revision for the second half of 2025 to the Public Utilities Commission of Sri Lanka (PUCSL).

In a statement issued by CEB spokesperson Engineer Dhammika Wimalaratne, it is noted that although the proposed revision will result in increased tariffs, the new rates will remain below those of early 2025.

The statement further notes that, although the costs of electricity generation, transmission, and distribution rose significantly between 2014 and 2022, no corresponding changes were made to electricity tariffs during that time. It is claimed that fuel prices, coal, spare parts, and maintenance costs continued to increase steadily.

Due to the CEB having to absorb the entirety of these rising costs, the board was compelled to take on large-scale loans and delay payments to suppliers, which has now escalated into a debt crisis, the statement added further.

Accordingly, the proposed tariff revision aims to systematically recover essential expenses, manage the debt crisis, and ensure timely payments to suppliers.

Dhammika Wimalaratne noted that the primary goal of the revision is to provide a safe, reliable, and uninterrupted power supply to all Sri Lankans without compromising the country’s future energy security.

The CEB also states that its objective is to provide electricity to the public at the most affordable price possible, strengthen the energy sector by introducing long-term reforms, promote low-cost energy sources, and enhance efficiency to reduce overall costs.

Yesterday, the CEB submitted a proposal to the Public Utilities Commission of Sri Lanka seeking an 18.3% increase in electricity tariffs for the period from June to December 2025.

According to the PUCSL, the proposal will be subjected to a public consultation process before a final decision is made.

The commission stated that its final decision regarding the proposed tariff revision will be announced during the first week of June after public consultations.

As per Clause 5.2 of PUCSL’s Tariff Methodology, end-user tariffs are determined based on CEB’s revenue requirements.

The CEB stated that it analyzed factors such as current tariffs, fuel availability, future prices, hydro inflows, plant schedules, interest rates, economic recovery, energy demand, transmission and distribution adjustments, and government policies to develop the BST and tariff proposal.

Based on the above analysis, a deficit of LKR 42,196.1 million has been estimated for the period from June to December 2025 requiring a tariff increase of 18.3%, it said.