Sri Lanka electricity tariffs increased amid higher generation costs

Sri Lanka’s electricity tariff increase will affect only 4.06% of domestic consumers, although tariffs have been raised by 18% due to higher generation costs.

Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said the tariff revision was approved after electricity generation costs increased sharply.

He made these remarks at a media briefing held today (May 11) at the Department of Government Information to explain the latest electricity tariff increase.

The Minister said the Public Utilities Commission of Sri Lanka (PUCSL) decided on the price revision after forecasting electricity generation costs. The decision was taken following a request made by the National System Operator (Pvt) Ltd.

According to the Minister, several factors were considered before approving the tariff increase. These include higher fuel costs due to the war situation in the Middle East, the lack of sufficient rainfall needed for electricity generation, and the projected cost of naphtha.

He said the earlier estimated cost of electricity generation was Rs. 77,432 million, but this had now increased to Rs. 104,449 million, an increase of Rs. 27,016 million.

Minister Karunathilaka said that, according to earlier PUCSL forecasts, Sri Lanka has 7,913,820 electricity consumers. Of this number, 6,751,133 are domestic electricity consumers.

He said 6,429,757 domestic consumers use less than 180 units of electricity per month. These consumers will not be affected by the electricity tariff increase.

Religious places, industrial sector consumers, and hotel sector consumers that use less than 180 units of electricity per month will also not be affected by the increase.

The latest tariff increase will not apply to 95% of electricity consumers in the country. There will be no increase in tariffs for domestic consumers using between 0 and 180 units per month.

However, households that use more than 180 units per month will face higher electricity bills based on their level of consumption.

A household using 210 units will see its electricity bill increase from Rs. 9,570 to Rs. 11,330, an increase of Rs. 1,760.

A consumer using 240 units will see the bill increase from Rs. 12,120 to Rs. 14,330, an increase of Rs. 2,210.

The PUCSL has also noted that households using 270 units and 300 units will face increases of Rs. 2,660 and Rs. 3,110, respectively.

The Minister also said the financial loss linked to the quality of coal had not had any impact on this tariff increase. He said arrangements had been made through the tender procedure to recover that loss from the relevant companies.

Minister Karunathilaka further said there would be no further electricity tariff increase until September 2026.

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