News
Electricity tariff reduction comes into force; Govt. goes with PUCSL decision
Energy Minister Kumara Jayakody yesterday said the government would go with the Public Utilities Commission’s (PUCSL) recommendations to implement an average 20 percent reduction of electricity tariffs.
Accordingly, the reduction of tariffs has come into effect from Friday midnight.
Hours after the PUCSL announced the reduction of the tariff rates, the Energy Ministry issued a statement saying that Finance Ministry approval would be needed to implement the recommendations.
However, the PUCSL’s Corporate Communications Director, Jayanath Herath, pointed out that according to the Electricity Act, it is the commission that has the sole authority to make the final decision on electricity tariffs. “While the Ceylon Electricity Board has the power to submit proposals, no other body is legally permitted to interfere in the PUCSL’s decision, as this has been the law since 2009,” he added.
Mr. Herath explained that if the CEB recorded a surplus last year, it is up to the PUCSL to decide whether to pass the benefit to consumers. Conversely, if the CEB incurs a deficit, the PUCSL determines how the cost will be recovered from consumers.
The PUCSL’s recommendation for tariff reduction followed a comprehensive review of cost estimates, public consultations, and proposals submitted by the CEB, he said. The revised tariff structure offers reductions across various consumer categories, with households receiving up to a 29 percent relief, depending on their consumption levels.
Religious institutions will benefit from a 21 percent tariff reduction, while the hotel and industrial sectors will see 31 and 30 percent reductions, respectively. Authorities in charge of street lighting and government institutions will receive an 11 percent tariff reduction.
This adjustment aims to provide financial relief to consumers while ensuring the sustainability of the electricity sector, the PUCSL said.
The PUCSL has also set specific conditions for licensees. Accordingly, the CEB must enter into a fuel supply agreement by March 31 this year. Additionally, SMS or e-billing services can only be implemented with the consumer’s written consent. Furthermore, fixed charges for solar panel customers will be determined based on their net consumption.
Mr. Herath also said that after assessing the impact during the first half of the year, further decisions and adjustments to the tariff would be made for the second half.
He said he also believed that businesses would extend relief to consumers in keeping with CEB tariff reductions.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!