No electricity tariff revisions for 1H of 2025: Power Ministry

Friday, 13 December 2024 05:01 - - {{hitsCtrl.values.hits}}

CEB projects Rs. 39 b revenue shortfall due to existing tariffs
Shortfall to be offset using 2024 profits and additional revenue
Utilises Rs. 112 b profits from 2023 to settle previous loans

The Power and Energy Ministry yesterday confirmed that electricity tariffs will remain unchanged for the first half of 2025, citing financial management measures taken to offset expected shortfalls.

Speaking at a media briefing organised by the Government Information Department, Power Sector Reform Secretariat Director General Eng. Pubudu Niroshan pointed out that maintaining the existing electricity tariff structure will result in a revenue shortfall of Rs. 39 billion for the Ceylon Electricity Board (CEB).

“The cost of electricity for the first half of 2025 is projected at Rs. 268 billion, whilst the existing tariffs are expected to generate only Rs. 229 billion. To bridge this gap, the CEB would use profits from this year’s earnings,” he explained.

He assured that there will neither be an increase or decrease in electricity tariff during the first six months of 2025.

Despite claims of significant profits by the CEB last year, he clarified that Rs. 112 billion from additional revenue was allocated to settle pre-existing loans.

Eng. Niroshan said for 2024, CEB anticipates an additional income of Rs. 41 billion, which will be used to settle the Rs. 39 billion deficits projected for the first six months of 2025.

“This financial management strategy is how we are able to avoid a tariff revision for the first half of 2025,” he said.