The Public Utilities Commission of Sri Lanka (PUCSL) has reduced the estimated electricity tariff increase for the fourth quarter of 2026 from 2.88% to 1.46% following a preliminary review of cost submissions by electricity sector institutions.
According to a consultation document issued ahead of a public hearing scheduled for November 5 at the BMICH in Colombo, the initial proposal was based on a forecast revenue deficit of Rs. 4.4 billion for the October–December period.
The total cost of electricity supply for the quarter is estimated at Rs. 157.3 billion, against projected revenue of Rs. 154 billion.
However, the PUCSL said its preliminary assessment identified several costs requiring adjustments, including increased generation capacity costs and expenses linked to the use of substandard coal.
The Commission has excluded certain additional costs submitted by Electricity Distribution Lanka (Pvt) Ltd., including Rs. 1.1 billion relating to loan repayments for an electricity supply improvement project.
It has also removed an increase in generation capacity costs and revised the estimated additional expenditure associated with substandard coal used during the second quarter of 2026.
These adjustments have brought the estimated tariff increase down to 1.46%.
The document also highlights a significant increase in coal prices compared to the previous quarter, while electricity generation costs for December are projected to be around 34% higher than in October and November due to reduced hydropower and renewable energy generation.
The PUCSL will seek stakeholder views during the public consultation before making a final decision on the electricity tariff revision.
No final tariff increase has been approved at this stage. (Newswire)