The Ceylon Electricity Board (CEB) has strongly refuted recent claims regarding the revision of electricity tariffs.
Addressing the controversy, the CEB clarified its position on a proposal submitted to the Public Utilities Commission of Sri Lanka (PUCSL) on October 24, 2024, which recommended a reduction in electricity tariffs by a range of 6% to 11%.
Issuing a statement, the CEB said that this proposal was based on projected expenses for the final quarter of 2024, revenue data from the second and third quarters, and the repayment of loans incurred during 2014–2022.
The submission was made following the current tariff calculation methodology, it added, noting that however, the ‘electricity sector regulator’ rejected the proposal, citing the need to implement any tariff revisions considering the first six months of 2025, rather than the last quarter of 2024.
“The regulator requested the CEB to redraft the proposal and submit it by December 6, 2024. This would ensure adequate time to prepare a revised tariff plan that aligns with the updated methodology and is effective from 2025”, it added.
Furthermore, the CEB expressed its inability to implement tariff reductions for the final quarter of 2024 due to the regulator’s decision to revise the calculation methodology which was used during the first three quarters of the year 2024.
The CEB highlighted challenges faced between 2014 and 2022, during which loans were taken to address operational costs, noting that despite approving expenditures during this period, the regulator did not revise electricity tariffs to accommodate the increased financial burden.
The CEB reiterated its role in estimating electricity costs and proposing tariff revisions in a manner that balances operational costs and consumer interests. The board affirmed its commitment to submitting a fair and reasonable tariff proposal that ensures affordability for consumers while maintaining the sustainability of the electricity sector.
