Electricity tariffs can be reduced by 20%: ECA

The Electricity Consumers’ Association (ECA) has claimed that electricity tariffs in Sri Lanka could have been reduced by approximately 20% if the Public Utilities Commission of Sri Lanka (PUCSL) had accurately accounted for losses stemming from the use of substandard coal. At a recent media briefing in Maradagahamula, Gampaha, ECA Secretary Sanjeewa Dhammika questioned the whereabouts of the remaining Rs.

5.131 billion in such losses, stating that they had not been incorporated into subsequent electricity tariff adjustments. This claim emerged following the PUCSL's decision not to implement a tariff revision for the upcoming quarter.

Dhammika pointed out that the PUCSL had earlier disclosed that losses due to substandard coal equated to Rs. 8.497 billion. During the first-quarter tariff revision, the Commission disallowed Rs. 3.366 billion of the requested increase by the Ceylon Electricity Board (CEB), deeming consumers should not bear the cost of these losses. He argued that the remaining Rs. 5.131 billion had been overlooked during the second-quarter tariff revision and the most recent review.

"If this amount had been properly accounted for, electricity tariffs could have been reduced by around 20 percent," Dhammika asserted, questioning the PUCSL's silence on the matter. He also alleged that the government had neglected to tackle institutional inefficiencies within the power sector and had not made significant strides towards its renewable energy objectives. According to Dhammika, the goal of generating 30% of electricity from renewable sources by 2030 seemed improbable.

Moreover, he accused the government of failing to finalize long-term fuel procurement agreements, despite multiple suggestions from the PUCSL. Dhammika also criticized the plans for developing LNG power plants, contending that these projects would likely rely on more costly diesel generation in the absence of the requisite LNG infrastructure.

He contended that addressing these issues would create opportunities for further reductions in electricity tariffs. However, PUCSL officials were not available for comment at the time of this report.