The Public Utilities Commission of Sri Lanka (PUCSL) has reduced the estimated electricity tariff increase for the 4th quarter of 2026 from 2.88% to 1.46%.
This comes after its preliminary review of a tariff revision proposal which had 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 a consultation document issued ahead of a public hearing scheduled for November 5 at the BMICH in Colombo, the initial proposal was based on a forecast revenue deficit of Rs. 4.4 billion for the 4th quarter.
The total forecast cost of electricity supply for the quarter stands at Rs. 157.3 billion, against projected revenue of Rs. 154 billion.
However, the PUCSL says its preliminary assessment identified several costs requiring adjustments which has brought the estimated tariff increase down to 1.46%.
The adjustments include increased generation capacity costs and expenses linked to the use of substandard coal. The Commission has also excluded certain additional costs submitted by Electricity Distribution Lanka (Pvt) Ltd., including Rs. 1.1 billion relating to loan repayments for an electricity supply improvement project. It has also removed an increase in generation capacity costs and revised the estimated additional expenditure associated with substandard coal used during the second quarter of 2026.
The document also highlights a significant increase in coal prices compared to the previous quarter. No final tariff increase has been approved at this stage and the PUCSL will seek stakeholder views during the public consultation before making a final decision on the electricity tariff revision.
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