May 23, 2023

Press Release

PUCSL to announce new electricity tariffs on 30^th June 2023

• Public comments on the proposed tariff revision are welcome
• Sri Lanka sees an increase of energy poverty

The revision of electricity tariff will be effective from 1^st of July 2023, which will be announced on 30^th June, Mr Janaka Ratnayake, Chairman of Public Utilities Commission of Sri Lanka (PUCSL) said.

“According to Section 30 of the Sri Lanka Electricity Act and Section 17 of the Public Utilities Commission of Sri Lanka Act, the opinion and suggestions of all parties should be listened to during a tariff revision. Therefore, we have invited comments and suggestions from the public regarding the 3 percent electricity tariff reduction proposal presented by the Ceylon Electricity Board (CEB) and the alternative proposal presented by the Commission. The electricity tariff proposal of the Commission will be announced on 1^st of June. The public can submit their comments and suggestions in writing to the Commission from 1^st of June to 20^th of June. There will also be an opportunity to give oral comments regarding the tariff revision. We invite all parties to actively participate in this tariff revision process. Because these suggestions can be included in the final tariff revision,” Mr. Janaka Ratnayake, Chairman of Sri Lanka Public Utilities Commission of Sri Lanka said.

Mr Ratnayake pointed out that the low consumption groups have faced many difficulties due to the recent electricity tariff hike.

“The poor consumers who consume less than 90 units had an unfair tariff hike during the electricity tariff revision in last February. were unfairly hiked.  Tariff were increased from 150 percent to 250 percent in these categories in violation of the provisions of the Act which is reasonable cost basis, affordability and that the people who should be subsidized should be subsidized. Due to both recent tariff revisions, the tariff has increased by 1200 percent for the categories which consume less than 30 units. They had to pay 66 rupees for a unit bought for 5 rupees per unit before last August. According to the government’s surveys, the number of families who are in extreme poverty is 3 million. This is the group use between 0 and 60 units of electricity per month. According to new data on electricity consumption, the number of electricity consumers who do not use a single unit per month has increased to 436,000 as of last February. About 600,000 of consumers who used more than 90 units per month fell into the categories of consuming less than 60 units. These data show that energy poverty has increased due to the recent increase in electricity tariffs. This situation should be rectified immediately.”

Consumers who consume less than 120 units in the domestic sector, religious places and tourist hotels, who were unfairly affected by the baseless tariff revision implemented last February, should be given justice in this tariff revision Mr Ratnayake said.

“Nearly 5 million of consumers in the domestic sector could not afford the previous tariff hike. This situation arose as the tariffs were increased by 66 percent, instead of the 35 percent rate increase that we had originally proposed. We will take steps to do justice to these consumers in the upcoming tariff revision. Also, the fees in religious places should be reduced in an affordable manner. Attention will also be paid to the sectors that generate foreign exchange for the country. In order to maintain the tourism industry, export industries etc. sustainably, energy costs should be reduced as much as possible.”

Janaka Ratnayake
Chairman
Public Utilities Commission of Sri Lanka