Sri Lanka electricity tariffs could be reduced by 20%, says consumer association

Sri Lanka’s electricity tariffs could be cut by 20 per cent in the fourth quarter of this year as high reservoir levels and growing solar power generation lower generation costs., the Electricity Consumers’ Association said.

ECA Secretary Sanjeewa Dhammika made these remarks during a press briefing in Divulapitiya, ahead of submitting engineering data to the Public Utilities Commission of Sri Lanka (PUCSL) today.

He said that hydropower reservoirs are currently operating at 95 to 100 per cent capacity, generating low-cost electricity at unit rates between Rs 2 and Rs 4. Solar power has simultaneously expanded to meet approximately 27 per cent of the national electricity demand.

Detailed engineering data demonstrating the feasibility of the rate reduction will be presented at the regulator's public consultation scheduled for 5 November.

The association warned of critical grid vulnerabilities, projecting a national requirement of 450 megawatts in battery storage capacity by April next year.

Proposed solutions involve developing dual storage networks to enable rooftop solar operators to supply night-time demand while strengthening key grid points to reduce reliance on expensive diesel power.

Progress remains hampered by significant procurement delays, as a tender for an initial 160 megawatts of battery capacity scheduled for December remains unawarded 14 months past deadline.

A further 150 megawatts is slated for installation by April next year, leaving an anticipated deficit of 140 megawatts. Additional operational challenges stem from curtailing solar production and shutting down small hydropower plants during peak daylight generation.

Expanding net metering and net accounting schemes offers a cost-effective pathway to scale solar adoption without adding financial strain to state coffers.