PUCSL proposes 1.46% electricity tariff hike

The Public Utilities Commission of Sri Lanka (PUCSL) has recommended a 1.46% increase in electricity tariffs for the October–December 2026 quarter, following its preliminary review of the tariff revision proposal submitted by the National System Operator (NSO).

The NSO had initially requested a 2.88% increase in electricity sales revenue, citing a projected revenue deficit of Rs. 4.4 billion for the fourth quarter of 2026.

According to the PUCSL, the total forecast cost of electricity supply for the quarter stands at Rs. 157.3 billion, while the expected revenue from electricity sales is Rs. 154 billion. A further Rs. 1.1 billion revenue deficit from the previous period has also been taken into account.

However, following its preliminary assessment, the Public Utilities Commission reduced the proposed tariff increase from 2.88% to 1.46%.

The reduction follows adjustments to the generation capacity costs submitted by Electricity Generation Lanka (EGL) and a revision of estimated additional costs associated with substandard coal usage during the second quarter of 2026.

The review also examines electricity generation forecasts, fuel prices, hydro power availability, renewable energy contributions, battery energy storage system (BESS) costs and additional expenses submitted by Electricity Distribution Lanka (EDL).

The NSO has forecast electricity demand of 4,796 gigawatt-hours for the fourth quarter, with major hydro power expected to account for 32.34% of generation, followed by coal at 25.68% and other renewable energy sources at 28.81%.

The PUCSL has also initiated a public consultation process to obtain stakeholder views on the proposed revision before reaching its final decision on electricity tariffs for the quarter.

The general public wishing to participate in the consultation can register by calling 0770399119, according to the PUCSL.