Electricity Consumers’ Association warns tariff increase threatens Sri Lanka’s renewable energy goals and solar industry growth
The Electricity Consumers’ Association (ECA) has called on the Public Utilities Commission of Sri Lanka (PUCSL) to immediately suspend the recent tariff hike on solar electricity, labeling the decision unlawful and harmful to the country’s renewable energy ambitions. In a strongly worded letter to the PUCSL Chairperson, ECA Secretary Sanjeewa Dhammika questioned the regulatory body’s silence on the matter and challenged its compliance with the Electricity Act and its 2013 Amendment.
According to the ECA, PUCSL has the legal mandate under Sections 43 and 43(6) of the Electricity Act to intervene in tariff decisions and take legal action against any irregularities. Dhammika emphasized that the tariff hike constitutes an unlawful procedure, urging the PUCSL to exercise its authority to halt the increase immediately.
Speaking to The Daily Morning, Dhammika criticized PUCSL’s apparent inaction in supporting the Government’s renewable energy target of achieving 70% clean energy generation by 2030. He highlighted that the planned addition of 1,000 megawatts of solar capacity to the national grid within a year is already under threat due to the increased tariffs. The solar sector, known for its low-cost power generation and significant employment contributions, faces severe setbacks that could lead to widespread job losses and negative impacts on existing solar users.
The ECA also questioned why the PUCSL has not demonstrated similar urgency in reviewing costs related to diesel and furnace oil, energy sources often burdened by US dollar-denominated transactions and commission-based fees.
Referring to a previous PUCSL recommendation dated July 15, 2024, which suggested that the last tariff reduction should not have been approved, Dhammika sought clarification on whether this recommendation had been acted upon or ignored.
Attempts to obtain comments from the Ministry of Energy Secretary and the Acting Chairperson of the Ceylon Electricity Board were unsuccessful.
The ongoing debate highlights mounting tensions between consumer interests, regulatory oversight, and the future of renewable energy investment in Sri Lanka — with the tariff hike at the center of the controversy.