CEB moots 18.3% tariff hike for 2H to offset costs, operational challenges

Insists proposed tariff increase is essential to maintain uninterrupted power supply, ensure financial viability as per IMF program, and support national energy security goals States tariff hike to address projected revenue shortfall of Rs. 42.19 b between June and December 2025 Forecasts revenue from new tariff revision is over Rs. 230.71 b Cites significant maintenance outages scheduled across several plants—Lakvijaya Power Plant, Kotmale, Ukuwela, and Victoria hydro plants Notes 312 MW Sobadhanavi IPP Thermal Plant expected to begin operations in combined cycle mode by next month PUCSL to release Public Consultation Paper tomorrow, will make decision in early June

- CHARUMINI DE SILVA

THE electricity regulator, the Public Utilities Commission of Sri Lanka (PUCSL) on Saturday announced that the Ceylon Electricity Board (CEB) has formally submitted its proposal for the second electricity tariff revision for 2025, seeking a significant 18.3% increase in electricity tariffs for the second half of the year.

The proposal was sent to the PUCSL in response to its earlier correspondence (PUC/E/Tariff/01, dated 29 April and 14 May 2025), citing escalating operational expenses, hydroelectric generation adjustments, and the need to maintain financial stability under Sri Lanka's Extended Fund Facility (EFF) arrangement with the International Monetary Fund (IMF).

The tariff hike is intended to address a projected revenue shortfall of Rs. 42.19 billion between June and December 2025, which the CEB warns could jeopardise the financial and operational stability of the power sector.