Ceylon Electricity Board (CEB) Chairman, Dr. Tilak Siyambalapitiya, has confirmed that the decision to provide electricity tariff relief to the public is aligned with directives from the Ministry of Finance.
Dr. Siyambalapitiya emphasized that the Public Utilities Commission (PUC) operates under the supervisory purview of the Finance Ministry. Consequently, the 20% reduction in electricity tariffs is being implemented based on recommendations from the Minister of Finance.
Highlighting the Electricity Act, he noted that tariffs must be structured in proportion to the cost of electricity. He further clarified that both the CEB and the PUC function under the Finance Ministry’s oversight.
Dr. Siyambalapitiya shared these remarks in response to a query regarding a notification from the PUC. The notification described the tariff reduction as a recommendation and indicated that its implementation followed Finance Ministry instructions.
PUC Announces 20% Tariff Reduction
The Public Utilities Commission announced on the 17th that electricity tariffs across all categories would be reduced by 20%, effective from midnight. According to Jayanath Herath, the Commission’s Corporate Communications Director, this decision followed a proposal by the CEB to maintain existing tariffs for the first half of 2025.
After reviewing the amendment proposal from the CEB, a counter-proposal by the PUC, and public feedback during consultations, the PUC approved the tariff reduction.
Breakdown of New Tariffs
The revised tariffs, effective from midnight on Friday, reflect the following reductions across various categories:
- Households:
- 0-30 units: 29% reduction
- 31-60 units: 28% reduction
- 61-90 units: 19% reduction
- 91-180 units: 18% reduction
- Above 180 units: 19% reduction
- General Purpose: 12% reduction
- Government Institutions: 11% reduction
- Hotels: 31% reduction
- Industries: 30% reduction
- Religious and Charitable Institutions: 21% reduction
- Street Lamps: 11% reduction
Impact on Household Tariffs
The new tariff structure significantly lowers costs for households. For example:
- For 0-30 units, the monthly bill will decrease from Rs. 100 to Rs. 75, with the per-unit cost dropping from Rs. 6 to Rs. 4.
- For 31-60 units, the monthly bill will reduce from Rs. 250 to Rs. 200, with the per-unit cost also dropping from Rs. 9 to Rs. 4.
Legal Implementation and Future Plans
Mr. Herath stated that the tariff revision is the final decision under the provisions of the Electricity Act. The new rates are legally binding and must be implemented from midnight on Friday. The CEB is obligated to adopt the revised tariff structure.
Additionally, Leco Electricity Private Limited has proposed introducing a prepaid tariff system, expected to roll out by April. This system will offer interested Leco customers a simple and adaptable payment option.
Conclusion
The electricity tariff revision reflects the government’s commitment to easing the financial burden on consumers while maintaining compliance with legislative frameworks. The revised rates aim to benefit various sectors, from households to industries, ensuring equitable access to affordable electricity.
