Bangladesh: Government Raises Electricity Prices

The Bangladesh Energy Regulatory Commission (BERC) has announced an increase in electricity prices in the country. As a result, retail-level electricity prices have increased by 15% to 19.94%, while wholesale prices have risen by 19.85%.

BERC made the new tariff announcement on Wednesday afternoon. The new rates will come into effect from this month.

At the wholesale level, the price of electricity has increased by 1.39 taka per unit. At the consumer level, the average increase is 1.52 taka per unit.

The Bangladesh Power Development Board (BPDB) had proposed a 17% to 21% increase, or 1.20 to 1.50 taka per unit, at the wholesale level. Among distribution companies, DESCO proposed a 9.67% increase, DPDC 6.96%, WZPDCL 10%, REB 5.93%, NESCO 3 paisa per unit, and BPDB 29 paisa per unit increase.

Power Grid Company of Bangladesh (PGCB) had also proposed an increase of 30 to 31 paisa per unit in transmission charges. Public hearings on these proposals were held on 20 and 21 May.

During the hearings, consumers, business representatives, and others strongly opposed the price hike.