FINANCIAL CHRONICLE – The Public Utilities Commission of Sri Lanka (PUCSL), which oversees the nation’s electricity sector, has sanctioned an 18% increase in electricity tariffs for consumers who exceed 180 KWh usage. This adjustment will take effect on May 11, as announced on Saturday (May 9).
The tariff revision was informed by cost projections provided by the National System Operator on April 28. In a statement, the PUCSL noted, “Today’s decision follows careful consideration of feedback received during public consultations regarding the proposed changes, alongside the government’s subsidy policies.”
This latest adjustment follows a previous increase of 25.3% that was implemented on April 1 for the same consumer group. However, the PUCSL indicated that the new tariff changes will not affect 95% of consumers.
The second increase in tariffs occurs in the context of rising fuel prices and a contentious coal procurement process that led to the importation of subpar coal, alongside the resignation of the energy minister last month. Opposition parties had anticipated this price increase following the coal quality issues.
In response, the PUCSL stated it would direct the National System Operator to ensure that any additional costs related to electricity generation stemming from the coal shortage will not be passed on to consumers. “Thus, the National System Operator will cover these extra costs for the Electricity Generating Company (EGC) and will provide monthly reports to the Commission,” they added.
The recent price adjustment also includes a reduction in rates for low-consumption domestic users. The PUCSL has modified the fixed and energy charges for the initial 30 units and for the 31-60 unit range to alleviate the burden on low-income families. Additionally, tariffs for places of worship and charitable organizations have been lowered to support their community initiatives.
To promote the shift towards renewable energy, a new tariff framework has been established for electric vehicle (EV) charging stations. This framework includes distinct rates for “Off-Peak,” “Day,” and “Peak” hours, designed to optimize the national grid’s load management, according to the PUCSL.
The Commission has taken into account the repercussions of energy costs on national production and tourism, noting that small and medium enterprises (SMEs) and the hospitality industry will experience a restructuring of their demand charges to enhance their competitiveness on a global scale.
(Colombo/May 09/2026)
