Hon. Kumara Jayakody - Minister of Energy

¶ 01 Question 190/2024 - Electricity tariff revision: Details

¶ 02 Hon. Speaker, the answer is as follows.

¶ 03 (a) (i) Yes. The following Cabinet-level decisions relate to tariff revisions and policy guidelines for the electricity industry:

¶ 04 - By Cabinet Paper No. 23/0010/621/002 of 02.01.2023, a joint memorandum of the Hon. Minister of Finance, Economic Stabilization and National Policies and the Hon. Minister of Power and Energy: tariff revisions every six months.

¶ 05 - By Cabinet Paper No. 23/2066/621/092 of 28.10.2023, a joint memorandum of the same Ministers: tariff revisions every three months.

¶ 06 - By Cabinet Paper No. 24/2155/825/011 of 05.12.2024, observations by the Hon. Minister of Finance, Economic Stabilization and National Policies on the memorandum of the Hon. Minister of Energy (Letter MF/PE/CM/2024/195 of 18.12.2024): three-monthly tariff revision confirmed.

¶ 07 (ii) 18 January 2025.

¶ 08 (iii) Under current policy guidelines, tariffs are to be revised every three months. Accordingly, for the next quarter the Ceylon Electricity Board (CEB) is to submit a tariff revision proposal to the Public Utilities Commission of Sri Lanka (PUCSL) in line with the approved tariff methodology.

¶ 09 (iv) Practically, tariff revision proposals require time to prepare. The January 2025 tariff revision effective from 18.01.2025 takes about one and a half months to be fully reflected in the billing system. Until then, customer bills will include a blend of two rates. Fully revised bills reach consumers from mid-February; however, as calendar months are considered for tariff methodology, March is the first full calendar month at revised rates. Thus, by mid-April, the full impact can be assessed. After a comprehensive study, the CEB will submit the second tariff revision proposal for 2025 to the PUCSL.

¶ 10 (v) The current tariff revenue adequacy is assessed against factors such as fuel availability and prices, hydrology and reservoir levels, power plant dispatch and additions, interest rates, projected macroeconomic conditions, expected demand, alignment with allowed revenue, and Government policy guidelines. Based on these, the CEB is preparing the second tariff revision proposal for 2025.

¶ 11 (b) Does not arise.