Home News Feature PUCSL recommends 1.46% electricity tariff hike for fourth quarter
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PUCSL recommends 1.46% electricity tariff hike for fourth quarter

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By The Pulseline News Desk

The Public Utilities Commission of Sri Lanka (PUCSL) has recommended a 1.46% increase in electricity tariffs for the October–December 2026 quarter, substantially lower than the 2.88% increase initially sought by the National System Operator (NSO).

The recommendation follows a preliminary assessment of the NSO’s tariff revision proposal, which cited a projected revenue shortfall of Rs. 4.4 billion during the fourth quarter of this year.

According to the PUCSL, the total forecast cost of electricity supply for the three-month period is Rs. 157.3 billion, while projected revenue from electricity sales stands at Rs. 154 billion. The regulator has also factored in a further revenue deficit of Rs. 1.1 billion carried forward from the previous period.

However, following its review, the PUCSL hasreduced the proposed tariff adjustment from 2.88% to 1.46%, citing revisions to several cost components submitted by the relevant electricity sector entities.

The adjustments include a review of generation capacity costs submitted by Electricity Generation Lanka (EGL), as well as revised estimates of additional expenses arising from the use of substandard coal during the second quarter of 2026.

The regulatory assessment has also taken into consideration projected electricity generation, fuel prices, hydropower availability, renewable energy contributions, battery energy storage system (BESS) costs and additional expenditure submitted by Electricity Distribution Lanka (EDL).

Meanwhile, the NSO has projected electricity demand of 4,796 gigawatt-hours during the fourth quarter.

According to its generation forecast, major hydropower sources are expected to contribute 32.34% of the country’s electricity requirements, while coal-fired power generation is projected to account for 25.68%.

Other renewable energy sources are expected to contribute a further 28.81% to the national electricity supply during the period.

The PUCSL has now initiated a public consultation process to obtain feedback from electricity consumers and other stakeholders before making its final determination on the proposed tariff revision.

Members of the public wishing to participate in the consultation can register by calling 0770399119, the regulator said.

The final tariff decision will determine the electricity prices applicable to consumers during the October–December quarter.

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