At a public hearing called by the regulator many users, consumers understood the need for the increase but increase was too high.
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A difference to the charging mechanism where the bill went up by about a 1,000 rupees when 90 units were exceeded also caused much concern.
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"I have decided to reduce a certain percentage of the increase of those using up to 180 units," President Rajapaksa told the rally.
"I was also told by some who are using below 90 units that when they have a party or some event and usage go up, they will have to pay more.
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So I said may be up to another 4 or 5 units there should not be an increase.
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About 90 respondents from around the country made submissions at the public hearing including from Jaffna in the North.
But the regulator approved the tariff increase