Electricity consumers could face a tariff increase for the October–December 2026 quarter. However, the proposed increase has been reduced from 2.88% to 1.46% following a review by the Public Utilities Commission of Sri Lanka (PUCSL).
No final tariff increase has been approved yet. The revised figure is a recommendation that will be considered after public consultation.
The National System Operator (NSO) initially requested a 2.88% increase in electricity sales revenue. It said the sector could face a revenue shortfall of Rs. 4.4 billion during the fourth quarter.
According to PUCSL, the forecast cost of supplying electricity for the three-month period is Rs. 157.3 billion. Expected revenue from electricity sales is Rs. 154 billion, while a further Rs. 1.1 billion deficit from the previous period has also been included.
Why Is PUCSL Considering an Electricity Tariff Increase?
The difference between the expected supply cost and electricity sales revenue has created pressure for a tariff revision.
However, PUCSL reduced the original proposal after reviewing several cost estimates submitted by electricity sector institutions.
The Commission adjusted generation capacity costs submitted by Electricity Generation Lanka (EGL). It also revised the estimated additional expenses linked to substandard coal used during the second quarter of 2026.
Other factors considered include fuel prices, hydropower availability, renewable energy generation, battery energy storage costs and additional expenses submitted by Electricity Distribution Lanka (EDL).
Electricity demand for the quarter is forecast at 4,796 gigawatt-hours. Major hydropower is expected to provide 32.34% of generation, while coal is expected to contribute 25.68%. Other renewable energy sources are forecast to provide 28.81%.
These generation sources matter because their availability and operating costs affect the overall cost of supplying electricity.
Consumers Can Have Their Say Before the Final Decision
PUCSL has opened a public consultation to obtain views from electricity consumers and other interested parties before deciding on the proposed tariff revision.
A consultation session is scheduled for November 5, 2026, at the Bandaranaike Memorial International Conference Hall (BMICH), Colombo.
Consumers and other members of the public wishing to participate can register by calling 077 039 9119.
For households and businesses, the key point is that the proposed 1.46% increase is not yet an approved change to electricity bills.
PUCSL’s final decision will determine whether tariffs increase for the October–December quarter and what rates consumers will have to pay.
Last modified: November 4, 2026
