CEB seeks to recover Rs. 13 b from 11.7% tariff hike in 1Q

4,453 GWh net generation forecast for 1Q based on IMF GDP growth forecast of 3.1% and applied demand growth rate of 3.72% Ditwah damage to transmission towers, distribution lines and access roads adds to emergency repair and maintenance costs estimated at Rs. 20 b Rs. 5.8 b unrecovered revenue from delayed past tariff revisions and restoration of curtailed Return on Assets tighten cost recovery ahead of review by PUCSL

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THE Ceylon Electricity Board (CEB) has sought tariff recovery amounting to Rs. 13.1 billion for the January-March 2026 quarter, citing a projected revenue deficit requiring a tariff adjustment of 11.57%, in a formal submission to the Public Utilities Commission of Sri Lanka (PUCSL).

In its tariff revision proposal dated 24 December 2025, the CEB stated that the estimated deficit for the first quarter of 2026 has been assessed based on projected generation, dispatch conditions, cost recovery requirements, and revenue estimates, with any excess or shortfall to be addressed through the Bulk Supply Tariff Adjustment (BSTA) mechanism and considered in the subsequent tariff revision.

"Based on the above analysis, a deficit of Rs. 13.1 billion has been estimated for the January-March 2026 quarter, requiring a tariff increase of 11.57%," the CEB said, noting that variations in estimates would be accounted for through the BSTA framework.

According to the submission, the estimated total net energy generation for 1Q 2026 is 4,453 GWh, based on the International Monetary Fund's (IMF) forecast GDP growth of 3.1% for 2026.

The CEB has applied an annual electricity demand growth rate of 3.72% for the year, derived from the IMF growth projection.

The monthly net generation forecast for the quarter stands at 1,475 GWh in January, 1,389 GWh in February, and 1,589 GWh in March, bringing the total to 4,453 GWh.