Electricity tariff relief hits Rs46.56 billion

The government has provided cumulative relief of Rs46.56 billion to electricity consumers during the first eight months of FY2025-26 (July-February), resulting in an overall reduction of Rs0.71 per kilowatt-hour in consumer-end tariffs, according to a statement issued on Tuesday.

Despite global fuel price volatility, the government said it absorbed cost pressures to ensure that tariff adjustments translated into relief for consumers. The statement said industrial consumers recorded a notable decline in pre-tax tariffs, which fell from Rs49.19 per unit in March 2024 to Rs34.75 per unit in March 2026, marking a reduction of Rs14.44 per unit.

During the July-February period, total relief stood at Rs46.56 billion, while consumer-end tariffs declined by Rs0.71 per unit. For January and February 2026, net relief amounted to Rs26.85 billion, reflecting the combined impact of adjustments.

The Fuel Charges Adjustment (FCA) for January and February showed an increase of Rs21.18 billion, while the Quarterly Tariff Adjustment (QTA) recorded a negative adjustment of Rs48 billion, resulting in a net relief for consumers during the two months.

The statement said that contrary to concerns over tariff increases through adjustments, the cumulative figures indicated a net benefit for consumers. A total of Rs13.28 billion and Rs33.29 billion in relief was passed on through FCA and QTA, respectively, during FY2025-26 (July–February).

It said the rise in FCA for January and February was driven by higher demand and the forced outage of K-3, which increased generation costs. However, the negative QTA during the same period offset this impact.

The government said it remained cognisant of international fuel price volatility and supply disruptions, noting that tariff projections were based on variables including fuel prices, exchange rates, demand patterns and generation mix, all of which remain uncertain and beyond the control of the regulator, distribution companies and the government.

It added that fluctuations in global fuel prices and supply disruptions continued to affect power generation costs. Authorities said coordination with stakeholders was underway to mitigate impacts and protect consumers from undue financial burden going forward.