Electricity tariff reduction: 20% inadequate says consumers

By Anuradha Hiripitiyage

The government’s announcement of a 20% reduction in electricity tariffs has been criticized as inadequate by Sanjeewa Dhammika, Secretary of the Electricity Consumers’ Association. Speaking at a press conference in Colombo on Friday, Dhammika argued that the reduction should have been at least 30%, given that the Ceylon Electricity Board (CEB) reported profits of Rs. 200 billion over the past two years.

Addressing the media following the Public Utilities Commission of Sri Lanka’s (PUCSL) announcement of revised tariffs earlier in the day, Dhammika raised concerns over the process used to determine the reduction. He revealed that the Auditor General had previously sent a letter to the CEB, dated November 30, highlighting inaccuracies in the data provided for tariff adjustments.

“These concerns seem to have been overlooked in the current tariff revision,” Dhammika said.

He further claimed that if the PUCSL had properly analyzed the data, a 30% tariff reduction could have been implemented. Such a move, he suggested, would have not only eased the financial burden on the public but also contributed to the country’s economic recovery.

Dhammika also accused the PUCSL of failing to take legal action against CEB officials responsible for providing incorrect data, despite having the authority to do so. Additionally, he criticized the absence of Ministers Nalinda Jayatissa and Wasantha Samarasinghe, who typically participate in public consultations on tariff adjustments.

“Did they stay away because they saw the possibility of a 30% reduction and wanted to avoid supporting it?” he questioned.

The association called for greater transparency and accountability in tariff adjustments, urging the government to act in the best interest of the public.

Earlier in the day the PUCSL said that higher projected surplus of 44 billion rupees helped for 20 percent reduction electricity tariffs from Jan 17, against a proposal by the CEB to maintain the same price.

The PUCSL has the authority to decide the prices, as per law. The CEB’s request to maintain the same tariffs for the first six months of 2025 comes with its projection of only 2.3 billion rupee surplus in the period.

“But the PUCSL’s assessment showed there could be a 44 billion surplus in the first six months and we decided that the benefit of this surplus should go to the public,” Jayanath Herath, director at the PUCSL’s Communication Unit, told reporters at a media briefing on Friday.