The Ceylon Electricity Board (CEB) has firmly denied recent claims surrounding the revision of electricity tariffs, providing clarity on its proposed reductions.
In a statement, the CEB addressed the controversy, explaining its October 24, 2024, submission to the Public Utilities Commission of Sri Lanka (PUCSL). The proposal suggested tariff reductions ranging from 6% to 11%, based on projected expenses for the final quarter of 2024, revenue data from the second and third quarters, and the repayment of loans accumulated between 2014 and 2022.
The CEB noted that the submission adhered to the current tariff calculation methodology. However, the PUCSL rejected the proposal, requesting a revised submission by December 6, 2024. The regulator emphasized the need to align any tariff changes with the first six months of 2025 rather than the last quarter of 2024.
“The regulator has requested the CEB to redraft the proposal to accommodate the updated methodology and ensure it is effective from 2025,” the statement read.
The CEB also cited its inability to implement the proposed tariff reductions for the final quarter of 2024 due to the regulator’s decision to alter the calculation methodology applied earlier in the year.
Highlighting financial challenges between 2014 and 2022, the CEB pointed out that loans were taken to cover operational costs during this period. Despite the regulator approving expenditures, electricity tariffs were not adjusted to address the increased financial strain.
The CEB reiterated its role in estimating electricity costs and proposing tariff adjustments that balance operational sustainability and consumer affordability. It assured its commitment to presenting a fair and reasonable tariff proposal that maintains the sector’s sustainability while keeping electricity affordable for the public.
