No electricity tariff hike for third quarter as PUCSL says costs remain manageable

By The Pulseline News Desk

Electricity consumers will not face a tariff increase for the third quarter of 2026 after the Public Utilities Commission of Sri Lanka (PUCSL) ruled that the country’s power supply costs remain broadly in line with expected revenue despite a marginal rise in generation expenses.

Announcing its decision on Monday (3), the regulator said electricity tariffs applicable during the second quarter will remain unchanged after reviewing cost estimates submitted by the National System Operator Company.

According to the PUCSL, the estimated increase in electricity supply costs for the third quarter amounts to just 0.3%, or Rs. 417 million, a figure it said does not justify revising consumer tariffs.

The decision comes as the regulator continues to balance the financial sustainability of the electricity sector with the need to shield consumers from additional cost pressures during the country’s economic recovery.

The PUCSL said a substantial revenue surplus carried forward from the first quarter also helped offset higher operating costs.

Although the first-quarter surplus stood at Rs. 30.1 billion, the regulator noted that additional coal-related generation costs, which were subsequently excluded from tariff calculations, reduced the available balance to Rs. 26.75 billion.

When combined with the estimated third-quarter electricity supply cost of Rs. 159.27 billion, the total expenditure for the period is projected at Rs. 186.03 billion.

Revenue generated under the existing tariff structure is estimated at Rs. 156.24 billion. However, the PUCSL said this is supplemented by several additional funding sources, including Rs. 6.94 billion in profits carried over from 2025, Rs. 9.65 billion in government subsidies provided for electricity consumers, and Rs. 17.21 billion allocated to support the operations of the National System Operator.

Taken together, total projected revenue reaches Rs. 185.61 billion, leaving a shortfall of only Rs. 417 million against estimated costs.

Given the relatively small gap between projected expenditure and available revenue, the regulator concluded that maintaining existing electricity tariffs is financially feasible.

The decision is likely to provide relief to households and businesses already grappling with rising living costs, while signalling that the electricity sector’s finances remain sufficiently stable to avoid another tariff adjustment — for now.

The PUCSL reviews electricity tariffs every quarter based on projected generation costs, fuel prices, demand forecasts and the financial position of the power sector.