![Gossip Lanka News [English]](https://blogger.googleusercontent.com/img/a/AVvXsEhYm2aFFq-bIW1nWX-RrqnPFoIsVos6_VCVz8BpLt0QJi55GNXHXC2fugeRvL0qUStEuCfs7Sfu6ZiSlhrkldxfGuE_wzy5gitY6rMZ2KSi8VBbGvkgXLks37RwZV-4-HKbWiNLRxB8C_r1e4z3mpxFTMPDJPEADoG8E-bZteWFipeD5KNGbjvCfqEfKw=s300 "Gossip Lanka News [English]")
The Public Utilities Commission of Sri Lanka (PUCSL) has completely rejected the Ceylon Electricity Board’s (CEB) proposal to increase electricity tariffs by approximately 50% from July, according to a senior official.
CEB's Justification for Tariff Hike
The CEB cited two main reasons for the proposed tariff increase: the risk of financial instability if tariffs are not raised, and recommendations by the International Monetary Fund (IMF) to do so.
PUCSL Clarifies Tariff Adjustment Procedures
The PUCSL emphasized that if CEB expects to revise tariffs in July, a proposal must be submitted by May 15. It also recalled that tariffs were reduced earlier in January this year.
January 2025 Electricity Tariff Reduction
On January 17, 2025, the CEB reduced tariffs by 20%, with some consumer categories receiving reductions exceeding 30%.
Breakdown of Tariff Reductions by Consumption
Units 0–30: 20% reduction
Units 31–60: 28% reduction
Units 61–90: 19% reduction
Units 91–180: 18% reduction
Over 180 units: 31% reduction
Time-of-use category: 31% reduction
CEB Response to PUCSL Decision
A senior official from the CEB stated that while a proposal may be submitted, it is unclear whether tariffs will be raised.
Government Policy to Reduce Cost of Living
The government’s primary goal remains reducing the cost of living, and rejecting the tariff hike is seen as part of this policy.
International Monetary Fund’s Recommendation
Despite the IMF’s recommendation to raise tariffs, the PUCSL and government have opted not to do so, prioritizing public affordability.
Public Reaction and Consumer Rights Groups
Consumers have expressed relief over the rejection, with rights organizations urging the CEB to explore alternative revenue streams.
Next Steps for Tariff Revisions
If the CEB intends to propose a tariff revision for July, the PUCSL is open to reviewing it—provided it aligns with public interest, and it must be submitted by May 15.
Structural Reforms in the Energy Sector
The Ministry of Power and Energy is currently drafting a structural reform plan aimed at improving efficiency and potentially reducing future electricity costs.