The Public Utilities Commission of Sri Lanka said in a statement Thursday the state-run Ceylon Electricity Board had filed estimated cost of 268 billion rupees.
"The Commission is in the process of assessing these estimates," the PUCSL said in a statement.
"The Commission will study whether these estimates presented by the CEB are compiled in line with the approved tariff methodology.
"The Commission will also take into account the applicability and accuracy of these estimated costs. Based on this analysis the Commission will revise the estimates of the CEB."
If the commission decides to revise the tariffs a public consultation will be held and tariffs will be revised taking into consideration any subsidies received from the Treasury.
But subsidies from the Treasury are also collected from the people or borrowed, which requires an interest rate hike in the economy.
In 2012 Sri Lanka's rupee fell from 110 to 134 to the US dollar mostly due to a surge in bank credit taken by state-run power and petroleum utilities from mid 2011, which were effectively accommodated with central bank credit (printed money).
The central bank sterilized foreign exchange sales resisting an interest rate hike triggering a balance of payments crisis. In February 2012, energy prices were jacked up and rates allowed to go up.
The regulator is supposed to revise tariffs every six months if costs rise it was not done during 2011. In 2012 February energy prices were hiked as a part of measures to balance of payments pressure.
Regular energy price revisions based on a rule of law allows the exchange rate to strong and inflation low. A depreciating exchange rate destroys the real value of wages as well as lifetime bank savings deposits.
Power minister Champika Ranawaka earlier this week called for a price formula for both power and petroleum.