The Public Utilities Commission of Sri Lanka (PUCSL) has reduced the proposed electricity tariff increase for the fourth quarter of 2026 from 2.88% to 1.46%, following a preliminary review of cost submissions made by electricity sector institutions.
According to a consultation document issued ahead of a public hearing scheduled for November 5 at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo, the initial proposal was based on an estimated revenue shortfall of Rs. 4.4 billion for the October–December period.
The total cost of electricity supply for the quarter is estimated at Rs. 157.3 billion, while projected revenue stands at Rs. 154 billion.
However, the PUCSL said its preliminary assessment identified several expenditure items requiring adjustments, including generation capacity costs and expenses associated with the use of substandard coal.
The Commission has excluded certain additional costs submitted by Electricity Distribution Lanka (Pvt) Ltd., including Rs. 1.1 billion allocated for loan repayments related to an electricity supply improvement project.
It has also removed an increase in generation capacity costs and revised the estimated additional expenditure linked to substandard coal used during the second quarter of 2026.
Following these adjustments, the proposed tariff increase has been revised downwards to 1.46%.
The consultation document further points to a significant rise in coal prices compared to the previous quarter. Electricity generation costs for December are also projected to be around 34% higher than in October and November, mainly due to reduced hydropower and renewable energy generation.
The PUCSL is scheduled to seek public and stakeholder views at the November 5 hearing before reaching a final decision on the proposed tariff revision.
No final decision has been made on the electricity tariff increase, and the 1.46% figure remains a preliminary proposal.
