The Public Utilities Commission of Sri Lanka (PUCSL) has announced a significant reduction in electricity tariffs, effective from midnight today (17). The new tariff structure will reduce overall electricity costs by 20%, with some consumer categories receiving reductions of over 30%.
Details of the Tariff Reduction
Addressing a special press briefing at the PUCSL headquarters in Kollupitiya, Director of Institutional Communications, Janath Herath, clarified that the decision was made under the provisions of the Public Utilities Act. As a result, the Ceylon Electricity Board (CEB) is legally bound to implement these changes.
Herath explained that while the overall reduction for residential consumers is 20%, the exact percentage varies based on usage tiers. The new rates are as follows:
- 0-30 units: 20% reduction (from Rs. 280 to Rs. 195)
- 31-60 units: 28% reduction (from Rs. 700 to Rs. 500)
- 61-90 units: 19% reduction
- 91-180 units: 18% reduction
- Above 180 units: 31% reduction
Commercial and Institutional Adjustments
Substantial reductions were also introduced for commercial and industrial categories:
- Hotels: 31% reduction
- Industries: 30% reduction
- Religious and charitable institutions: 21% reduction
- Public services: 12% reduction
- Government institutions and street lighting: 11% reduction
Context and Justification
The decision follows a detailed feasibility study conducted by the PUCSL, despite the CEB’s earlier submission on December 6, stating that tariff reductions would be unviable until the first nine months of 2025. The PUCSL, however, based its decision on the improved financial stability of the CEB, which is expected to generate an Rs. 44 billion surplus in the first six months of 2025.
The tariff reduction was also influenced by public consultations held nationwide, which underscored the urgent need for affordable electricity.
Impact on Households and Businesses
The revised tariffs will provide significant relief, particularly to low-income households. For instance, a household consuming 300 units per month will see their electricity bill reduced from Rs. 14,660 to Rs. 11,900.
Legal Obligations for Implementation
PUCSL emphasized that if the CEB fails to implement the revisions, legal action will be initiated under the provisions of the Public Utilities Act. Herath reaffirmed that the PUCSL is committed to ensuring the implementation of this consumer-friendly reform.
This tariff revision is expected to bring significant financial relief to a wide range of consumers, stimulate economic activity, and address long-standing affordability concerns in the electricity sector.