Ceylon Electricity Board to reduce electricity tariffs by nearly 20 percent

Ceylon Electricity Board - Sri Lanka

The Ceylon Electricity Board (CEB) is planning to reduce electricity tariff by nearly 20 percent through the new proposals of the CEB which is due to be submitted to the Public Utilities Commission of Sri Lanka (PUCSL) on Thursday (February 22).

When inquired by the media why the CEB initially proposed a 3.4 percent reduction in electricity tariffs but then going to propose nearly a 20 percent reduction in the new proposal, CEB Spokesperson Engineer Noel Priyantha explained that this change could only be done by reducing the maintenance cost.

He further stated that due to the challenges posed by the COVID-19 pandemic and the economic crisis, the CEB faced difficulties in importing necessary spare parts for maintenance due to the inability to open Letters of Credit.

Priyantha said the engineers are working to gather the required parts, adding they will carry out essential maintenance work and delay other activities, following discussions with the manufacturer.

Earlier, the CEB said the price reduction is possible mainly due to the increased percentage of hydropower in the energy mix of the country.

Sri Lanka received sufficient rainfall recently increasing the power generation capacity of major plants.

The CEB raised the tariff by 66 percent on February 15, 2023 and electricity tariffs were increased for the last time by 18 percent on October 20, 2023.

The decision to raise tariffs came after the CEB requested the PUCSL to adjust electricity prices to offset the costs incurred during periods of arid weather conditions in Sri Lanka.