- New PUCSL members next month
- Hydropower generation increases
- CEB to submit tariff proposal soon
State-owned electricity provider, the Ceylon Electricity Board (CEB) is gearing up to reduce electricity tariffs further as it continues to operate profitably, The Sunday Morning learns.
A senior CEB official, speaking on condition of anonymity, revealed that the board was now earning profits from electricity generation and intended to pass those benefits on to consumers.
“We are earning profits now, so we will pass that profit to the public,” the official said.
According to the official, the CEB has significantly reduced its reliance on costly diesel power, using its diesel plants only during peak demand, which lasts for about 10 minutes a day.
The majority of electricity generation now comes from more cost-effective sources, including hydro and thermal coal, making additional tariff reductions possible.
This proposed reduction follows a major tariff cut announced in July by the Public Utilities Commission of Sri Lanka (PUCSL), which saw electricity prices for domestic consumers reduced by 25%. That tariff adjustment was part of a broader 22.5% revision across all consumer categories.
The July announcement provided substantial relief to low-income households, including a Rs. 2 reduction per unit for those using up to 30 units of electricity per month.
Consumers using between 31 and 60 units saw their rates slashed by 55%, with the price per unit dropping from Rs. 20 to Rs. 9. Religious institutions, minor industries, and hotels also benefited from significant reductions.
At the time, the PUCSL set several conditions on the CEB as part of the tariff adjustment. These included the option for consumers to request printed electricity bills and directives for the CEB to establish agreements with the Ceylon Petroleum Corporation (CPC) for fuel purchases related to electricity generation.
CEB Board member Eng. Pubudu Niroshan Hedigallage told The Sunday Morning that the board was preparing to submit a new tariff revision proposal to the PUCSL, which would then decide the extent of any further reductions after reviewing the CEB’s updated financial data.
“The CEB will submit its accounts and, based on the data, the PUCSL will decide whether to reduce the tariffs and, if so, by how much,” Hedigallage explained.
The exact percentage of the proposed tariff reduction has not been confirmed, but Hedigallage noted that the CEB had completed its quarterly financial assessments and was prepared to implement the changes once the PUCSL gave its approval.
“We will pass the benefit to the consumers. We are no longer incurring any losses,” he added.
Further, he indicated that the CEB was ready to move forward with a quarterly tariff revision mechanism to ensure future electricity prices reflected the most recent financial and operational data.
As of Friday (11), Sri Lanka’s total energy generation amounted to 44.05 GWh. The largest contributor was the CEB’s thermal coal plants, which produced 13.11 GWh, accounting for 29.77% of the total output.
Hydropower sources also played a major role, with the Mahaweli Hydro Complex generating 5.20 GWh (11.81%) and the Laxapana Hydro Complex contributing 4.64 GWh (10.53%).
The Samanala Hydro Complex generated 3.66 GWh (8.30%), while Small Power Producers (SPPs) added to the mix through renewable energy. SPP solar plants generated 2.97 GWh (6.74%), wind farms contributed 1.09 GWh (2.47%), and mini-hydro plants produced 3.77 GWh (8.56%).
Data from 11 October also revealed that peak power demand occurred at 6.30 p.m., with an active power demand of 2,240 MW and reactive power of 252.3 MVAr. The minimum demand of 1,277.4 MW was recorded at 3.15 a.m.
Hedigallage emphasised that the CEB’s reliance on diesel electricity had significantly decreased as the board had shifted towards using more hydroelectric and coal-based power.
“We are generating more electricity from hydropower,” he said. “We no longer rely heavily on diesel electricity and the use of CEB-owned diesel power plants is minimal and only during peak periods.”