The Minister of Power and Energy, Kanchana Wijesekera, highlighted that following the recent revision of electricity tariffs, there is potential for a reduction of approximately 20% in the prices of goods and services in the market.
During a press briefing titled “Collective Path to a Stable Country” held at the President’s Media Centre (PMC) yesterday(16), Minister Wijesekera urged the business community to alleviate the burden on the public by lowering prices, starting from midnight on the day of the electricity tariff adjustment, coinciding with the reduction in electricity bills.
He emphasized that those consuming less than 90 units have benefited the most from the recent electricity amendment, receiving significant relief.
“The government has decided to revise the electricity tariff every January, April, July, and October each year,” the Minister elaborated. “Following the tariff adjustment in March, the Public Utilities Commission (PUCSL) requested a July revision instead of April. Therefore, the new electricity tariff revision will take effect from July 16. The next revision is scheduled for October.”
Minister Wijesekera also explained that amid the economic crisis of 2022, bank interest rates soared to 36%. Escalating prices of coal, fuel, and other commodities due to the Russian-Ukrainian war contributed to the need for an electricity price revision, the first since 2014, which took place in August 2022.
However, this time, several key factors have contributed to a 22.5% reduction in electricity prices. Notably, there has been significant improvement in the economic situation. Additionally, over the past two years, increased rainfall has led to higher hydropower generation, and renewable energy production has also risen. In April, electricity from the Uma Oya hydropower plant was integrated into the national grid.
Over the last 18 months, the Ceylon Electricity Board (CEB) has diligently worked to reduce operational costs, including reducing the workforce from 26,000 to 22,000 employees by not hiring new staff.