Low-Consumption Electricity Users to Receive State Subsidy

COLOMBO (News 1st); President Anura Kumara Dissanayake has outlined the government’s approach to managing the impact of electricity tariff changes, stating that targeted relief will be provided to selected vulnerable groups as energy-related pressures continue.

Speaking on the matter, the President clarified that the electricity bill increase applied from April 1 was not linked to the current crisis, but was instead based on assumptions made earlier, effective from February.

He said the April adjustment reflected calculations already in place and should not be interpreted as a response to present economic conditions.

The President explained that for consumers using less than 30 units, the increase amounts to Rs. 15 per month, which he said translates to 50 cents per day. Other tiered increases, he noted, translate to approximately Rs. 1 per day and Rs. 1.50 per day respectively.

While emphasising that the April electricity bill increase is not a direct result of the present crisis, the President acknowledged that the broader economic situation has led to pressure points affecting electricity costs from multiple directions.

In response, he said the government considered three options: requiring the Ceylon Electricity Board to absorb the full burden, placing the entire cost on the Treasury, or passing the full cost on to the public.

Instead, the government has decided on a shared approach in which the burden will be distributed among the State, the public, and the National System Operator.

As part of this approach, the President announced that consumers using less than 90 electricity units will receive a subsidy during the next electricity bill revision.

For this purpose, the government has allocated Rs. 5 Billion per month, amounting to Rs. 15,00 Million for three months.

According to current estimates cited by the President, electricity sector losses over the three-month period are expected to be approximately Rs. 32 billion. Of this amount, the government has decided to bear Rs. 15 billion, while the remainder will be shared among other stakeholders. He cited a figure of Rs. seven billion, related to the recovery from the supplier of low quality coal for power generation.

The President said these measures are intended to ensure that the burden of electricity cost adjustments is not placed entirely on the public, while also maintaining stability within the national power system.