Minister hints at reduction in electricity tariffs in January

Minister of Power and Energy, Kanchana Wijesekera today announced that the upcoming electricity tariff revision in January, 2024 will potentially bring relief to the people, hinting at a reduction in electricity tariffs. 

The Minister also emphasized that the Value Added Tax (VAT) will not impact the electricity price revision.  

The Minister made the comments during a press conference held at the Presidential Media Centre (PMC) under the theme ‘Collective path to a Stable Country.' 

Minister Wijesekera further stated that the proposed new Electricity Bill has been gazetted and the Ministry is currently receiving various suggestions on it, the President's Media Division (PMD) said quoting the Minister. Diverse perspectives on the proposed new Electricity Bill are actively sought, and stakeholders including trade unions, political parties, public representatives and electricity consumers are invited to submit their comments and suggestions in writing. The submission period is open from today until January 3.  

Highlighting the imminent tariff revision in January, Minister Wijesekera noted that hydroelectricity is currently being generated at maximum capacity. In October, the increase in electricity tariffs was implemented due to the high cost of electricity production associated with the use of fossil fuels. However, the recent change in weather conditions has been noteworthy. The Ceylon Electricity Board (CEB) has reported that rainfall has been received in the last two months, and further rainfall is anticipated for the next two weeks. In light of this, there is a possibility of revising electricity tariffs. Considering the balance sheets of the Ceylon Electricity Board in December, we are optimistic that relief can be provided to the public in the upcoming tariff revision scheduled for January.

Additionally, Minister Wijesekera assured that the revision in January will not be impacted by VAT, clarifying that the power sector, including the materials used for power generation such as naphtha and coal, is exempt from tax. Discussions are underway to mitigate the VAT impact on fuel prices, which are scheduled for revision in January. There will be no shortage of fuel, as we currently possess sufficient fuel stocks to meet the demand, he stressed.