Power and Energy Minister: No Final Decision Yet on Electricity Price Hike

Power and Energy Minister Iqbal Hasan Mahmud Tuku has stated that no final decision has been reached regarding an increase in electricity prices. He also emphasized that solar energy will be made more accessible to create an alternative power system.

The Minister made these remarks as the chief guest today at the inauguration ceremony of the "Power, Energy, and Infrastructure Expo" held at the Bangladesh-China Friendship Conference Center.

The Energy Minister noted that Bangladesh still lags significantly behind in the renewable energy sector. Specifically, he mentioned that India and Pakistan have successfully reduced the pressure of fossil fuel-based power generation by increasing their use of solar and wind energy, whereas Bangladesh has been deprived of progress in this sector for a long time.

"Since the government took office, Prime Minister Tarique Rahman has directed that priority be given to solar and wind energy," the Minister said.

Meanwhile, preparations to increase electricity prices have begun following the hike in fuel oil prices. The Power Division has already given policy approval to the price hike proposal.

In this context, the Power Development Board (PDB) has proposed a price increase ranging from 17% to a maximum of 21% at the wholesale level. The Bangladesh Energy Regulatory Commission (BERC) has taken the proposal into account and formed a technical committee.

Recommendations have been made to increase the price of electricity by up to Tk1.50 per unit at both wholesale and retail levels.

Electricity prices were last increased in February 2024 via executive order. At that time, prices rose by 5% at the wholesale level and an average of 8% at the consumer level. Currently, the average retail price of electricity per unit is Tk8.95, while the wholesale price is Tk7.04 per unit.