The Electricity Consumers’ Association (ECA) has pushed back against the Ceylon Electricity Board’s (CEB) latest proposal to hike electricity tariffs by 18.3%, arguing that tariffs could instead be reduced by at least 20%.
ECA General Secretary Sanjeewa Dhammika highlighted that the CEB recorded substantial profits over the past two years—Rs. 57 billion in 2023 and Rs. 144 billion in 2024. Following a 22% tariff cut implemented in January this year, the Public Utilities Commission of Sri Lanka (PUCSL) authorized the CEB to use Rs. 51 billion from a Rs. 200 billion profit pool to manage its operations over a six-month span. However, only Rs. 18 billion of that amount was utilized.
“This means approximately Rs. 183 billion remains unspent. With such funds available, why is a tariff increase being proposed?” questioned Dhammika. He urged the PUCSL to factor in these surplus funds before approving any hikes and criticized the CEB for initially resisting the January tariff cut, despite clear financial capability to support it.
The ECA also raised concerns over the CEB’s references to large-scale borrowings in its proposal, questioning the purpose and utilization of these loans. “If these loans were meant for infrastructure like a power plant, has it been completed? The public deserves clarity,” Dhammika emphasized.
These remarks come as the PUCSL prepares to release a public consultation paper today (May 20) regarding the CEB’s tariff revision request. Provincial-level public consultations are set to begin on May 23.
In its proposal for the second half of 2025, the CEB claims the tariff hike is necessary to cover essential operating costs and address its financial liabilities, including what it describes as “legacy debt.” The board also asserts that even with the proposed increase, electricity rates will remain about 5.4% lower than at the start of the year.