4Q electricity tariff increase not needed: NSO

Friday, 6 November 2026 00:00 - - {{hitsCtrl.values.hits}}

NSO initially sought a 2.88% increase for October to December, citing a projected revenue shortfall of Rs. 4.4 b
PUCSL cuts proposed increase to 1.46% after a preliminary review
Public consultations on revised proposal held yesterday, after which NSO said it will not seek any increase for last three months of 2026
Cites prevailing reservoir storage and forecasts of above-normal rainfall under El Niño conditions

The National System Operator Ltd., (NSO) yesterday withdrew its request for an electricity tariff increase for the final quarter of 2026, reversing a proposal that the regulator had already reduced by half.

In a statement issued after the stakeholder consultation yesterday, the NSO, which operates the national grid, said it would no longer request a tariff revision for October to December.

The company said its revised position was based on prevailing reservoir storage levels and forecasts of above-normal rainfall under the current El Niño conditions, a periodic warming of the Pacific Ocean that typically brings heavier rain to Sri Lanka.

Better reservoir storage supports higher hydropower output and can reduce reliance on thermal generation, which burns imported fuel and costs more per unit than hydro.

The NSO had originally proposed a 2.88% increase for the quarter, citing a projected revenue shortfall of Rs. 4.4 billion. After a preliminary review, the Public Utilities Commission of Sri Lanka (PUCSL) reduced the proposed increase to 1.46% and called public consultations on the revised figure, held yesterday. The PUCSL has yet to issue its final determination for the quarter.