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Electricity tariff reduction: 20% inadequate says consumers

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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.



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Steps are taken to accelerate the recovery efforts following Cyclone Ditwah despite Global Economic Challenges

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A discussion on accelerating recovery measures and providing relief to those affected by the Cyclone Ditwah was held on March 28 at Temple Trees, with the participation of Prime Minister Dr. Harini Amarasuriya and civil society organizations.

During the meeting, a brief report on the current status of government measures including compensation payments through District Secretariats and information related to safety camps was presented to the Prime Minister by the Chief of Staff to the President and Commissioner General of Essential Services,  Prabath Chandrakeerthi.

Special attention was given to the concerns of the estate sector Estate sector Malaiyaha Tamil community affected by the cyclone, particularly those without legal land ownership, in accessing government relief and compensation. Attention was also drawn to the need for a policy decision in coordination with the Ministry of Plantation and Community Infrastructure regarding this matter.

It was further stated by the Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta , that plans have been made to accelerate the recovery process related to damages caused by the disaster in 2025. These include the construction of 20,000 new houses, the renovation of 115,000 partially damaged houses, and the provision of financial assistance amounting to Rs. 5 million for individuals who already possess safe land to build a house. Additionally, there are plans to construct apartment complexes with public facilities in major urban areas.

Officials further emphasized that the physical, psychological, and social well-being of affected communities especially women, children, and persons with special needs will continue to assess through civil society organizations, special committees, and sub-committees.

The Prime Minister emphasized that the efforts to rebuild damaged housing have focused on constructing homes in locations that are more suitable and equipped with urban public facilities over the past four months, stressing the importance of maintaining continuous communication with communities and ensuring that reconstruction takes place in safer locations that are less vulnerable to future disasters.

The discussion was attended by Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply Engineer L. Kumudu Lal Bogahawatta, Additional Secretary to the Ministry of Defence K.C. Dharmathilaka, and representatives from civil society organizations.

[Prime Minister’s Media Division]

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Burning of low-grade coal at N’cholai plant increases pollution: Parliament

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Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.

The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.

The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.

The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.

These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.

It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.

It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.

In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.

Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.

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Tariff shock from 01 April as power costs climb across the board

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By Ifham Nizam

Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.

The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.

Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.

For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.

However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.

Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.

“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.

The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.

The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.

Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.

Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.

With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.

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