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High-end electricity users face bigger bill from this month
View(s):Industries, hotels, places of worship, and govt. offices among those hit by 18% hike
Electricity consumers were given another price hike shock yesterday with the Public Utilities Commission of Sri Lanka (PUCSL) announcing an 18% increase in electricity tariffs for domestic consumers using more than 180 units per month.
The new rates will be applicable to the second and third quarters of 2026, with effect from Monday (May 11).
PUCSL Chairman K.P.L. Chandralal said the latest price hike was based on three main factors: an estimated revenue shortfall of about Rs 38 billion; the increase in fuel costs; and the prolonged dry weather conditions due to which there is growing dependency on thermal power generation.
Prof. Chandralal told reporters at a press briefing that only around 5% of large-scale electricity consumers would be impacted by the latest hike, and these would include industries, hotels and places of religious worship – those who consume more than 180 units per month.
All government institutions will face the full 18% hike.
He said the PUCSL has retained the current rates for several vulnerable or economically sensitive sectors. Small and medium-sized industries, as well as hotels under the H1 and H2 categories, will not experience a price hike unless their consumption reaches excessively high levels.
The government has also committed to providing Rs 15 billion in financial support so as to offset the price hike impact on the majority of users, he said.
“The PUCSL acts with a great deal of responsibility and wants to ensure that the consumer’s rights are protected while ensuring the viability of the sector,” he said.
Prof. Chandralal also underscored the urgency in signing Fuel Supply Agreements (FSAs) with suppliers like the Ceylon Petroleum Corporation (CPC) and the Lanka Coal Company. But he said these were being delayed despite the PUCSL emphasising that they must enter into formal fuel supply and distribution agreements to ensure transparency, cost efficiency, and security of supply.
“We issued an enforcement order in this regard, but so far this has not been implemented. Hence, we propose to take legal action,” he said.
The revised price hike comes just over a month after the PUCSL approved price hikes for all electricity consumers ranging between 10% and 13.5%, with higher consumption brackets facing steeper increases.
The PUCSL chief also announced that the Commission would hold a public hearing to ensure transparency in pricing of fuel purchased for electricity generation.
| Govt. to provide electricity, fuel subsidy for three months The Government will provide a subsidy for electricity and fuel for three months at the rate of Rs.15 billion for each sector, a government source said. This is to offset the impact of rising fuel and electricity costs in the recent past, the source said. The electricity sector subsidy is to provide relief to consumers who use less than 90 units. The combined amount of Rs.30 billion will be granted monthly with Cabinet approval, he said. | |
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