The Electricity Consumers' Association has alleged that the Public Utilities Commission failed to account for billions in losses from substandard coal in recent tariff decisions, potentially resulting in unnecessarily high electricity rates for consumers.
The Electricity Consumers' Association (ECA) has raised concerns about how the Public Utilities Commission of Sri Lanka (PUCSL) has handled financial losses stemming from substandard coal purchases. According to the ECA, electricity tariffs could have been reduced by approximately 20 percent if these losses had been properly reflected in tariff calculations.
Association Secretary Sanjeewa Dhammika pointed to a discrepancy in the accounting of coal-related losses totaling Rs. 8.497 billion. While the PUCSL previously disallowed Rs. 3.366 billion of a tariff increase requested by the Ceylon Electricity Board during the first quarter, Dhammika alleged that the remaining Rs. 5.131 billion has been unaccounted for in subsequent tariff reviews. He questioned why this amount was not considered during the second-quarter revision or in the most recent review, despite the PUCSL's decision to maintain tariff levels for the upcoming quarter.
Beyond the immediate coal loss issue, Dhammika raised broader concerns about the power sector's management. He alleged that the government has not adequately addressed systemic inefficiencies within the industry and has fallen short on renewable energy commitments, suggesting the target of generating 30 percent electricity from renewable sources by 2030 may be unachievable. He also criticized the lack of long-term fuel procurement agreements and questioned the viability of planned liquefied natural gas power plants without supporting infrastructure.
The PUCSL has not yet responded to these allegations. The association contends that resolving these underlying issues could create room for further tariff reductions beyond the potential 20 percent decrease related to coal loss accounting.
