Light up 15% costlier electricity from today

• PUCSL Chairman Prof. K.P.L. Chandralal describes decision as “decisive and sensitive”
• Cites decision is fair considering all stakeholders involved
• Affirms tariff stability remains top priority, Commission considering updates to current pricing methodology
• Says despite hike, electricity bills remain 8% lower in 2025 compared to 2024 due to prior reductions
• Household monthly bills will rise by Rs. 240 for 90 units, Rs. 360 for 120 units, Rs. 600 for 160 units, Rs. 840 for 180 units and Rs. 2,029 for electricity usage above 300 units
• Religious and charitable institutions with usage under 90 units remain unaffected
• Industrial, hotel and general-purpose sectors face average hike of 14-15% 
• State institutions see average 16% rise in electricity bills
• PUCSL Director General Damitha Kumarasinghe says electricity tariffs only risen 30% since 2014, remaining among least inflated services

By Charumini de Silva

PUCSL Chairman Prof. K.P.L. Chandralal

PUCSL Director General Damitha Kumarasinghe

Electricity regulator, the Public Utilities Commission of Sri Lanka (PUCSL), yesterday announced an average 15% increase in the electricity tariff for all categories for the second half of 2025, effective from today (12).

The Commission noted that it limited the proposed average electricity tariff increase to 15%, a reduction from the 18.3% original hike requested by the Ceylon Electricity Board (CEB) as per the cost-reflective methodology for the June to December 2025 period. 

The revised tariffs, which come into effect from today, follow extensive public consultations and a detailed review of proposals held across all nine provinces. 

Addressing the media, PUCSL Chairman Prof. K.P.L. Chandralal yesterday defended the decision, describing it as “decisive and sensitive,” noting that it impacts the interests of electricity users across various sectors, industries, and the broader economy.

“We think it was a fair decision, considering all stakeholders involved,” he stressed. 

Chandralal affirmed that tariff stability remains a top priority and said the Commission is considering updates to the current tariff methodology.

He said the new rates follow a 20% tariff reduction implemented in January 2025, meaning that despite the current revision, the overall effect on electricity bills this year compared to 2024 is a net decrease of 8%. 

As per the PUCSL, the decision was made based on the Sri Lanka Electricity Act, No. 20 of 2009, the cost-reflective tariff methodology, and a comprehensive analysis of public feedback.

The Commission also provided estimates on how the new tariffs will impact domestic electricity users. Household usage below 30 units per month will see only an average Rs. 20 increase, while those using 60 units will pay Rs. 85 more. Monthly bills will rise by Rs. 240 for 90 units, Rs. 360 for 120 units, Rs. 600 for 160 units, Rs. 840 for 180 units, and Rs. 2,029 for electricity usage above 300 units.

The PUCSL said religious places and charitable institutions with a monthly usage under 90 units will be shielded from any tariff hike. They will continue to be charged a unit rate of Rs. 4.50, with fixed monthly tariffs of Rs. 75 and Rs. 200 remaining unchanged. For such establishments exceeding 90 units, the increase has been capped at 12% with a lower comparative impact than in 2024.

The general-purpose sector faces a 14% increase, but its net impact compared to 2024 is 0.5%.  The PUCSL noted that industrial electricity users are also subject to a 15% rise and will experience an overall 20% reduction relative to 2024 rates. 

The hotel sector too faces an average 15% tariff hike, yet enjoys a net benefit of 19% over last year, as per the Commission. 

However, Government institutions will see a 16% increase. 

PUCSL Director General Damitha Kumarasinghe highlighted that despite the tariff increments, electricity remains one of the least inflated services in the country. 

“Since 2014, electricity tariffs have risen by just Rs. 6.50 per unit—an overall increase of 30%,” he added. 

He said in 2014, the unit price was Rs. 21.39 and, with the latest decision, it has only increased to Rs. 27.80.

Kumarasinghe also pointed out that several significant tariff reductions were implemented in the recent past, including a 21% cut in March 2024, a 23% reduction in July 2024, and a further 25% decrease in January 2025.

The Commission has committed to publishing a summary of actions taken in response to public feedback, underscoring its effort to make the tariff-setting process transparent and participatory.