Retail Electricity Price Hike by 10 Percent Proposed

Power distribution companies in Bangladesh have proposed increasing retail electricity prices by 6% to 10% per unit for consumers. They also requested that if wholesale electricity prices are increased, the additional cost should be added on top of the proposed retail price hike. Some distribution companies further proposed removing cross-subsidies for private schools, colleges, and hospitals and placing them under the commercial tariff category.

The Bangladesh Energy Regulatory Commission (BERC) began a public hearing on the proposal on Thursday morning at the Krishibid Institution Bangladesh (KIB) auditorium in Farmgate, Dhaka.

During the hearing, politicians, business representatives, consumer rights groups, and other stakeholders strongly opposed the proposed electricity price increase and called for it to be rejected.

They alleged that the burden of corruption and mismanagement in the power sector is being shifted onto consumers. According to them, there is no logical justification for increasing electricity prices. Instead, they argued that reducing irregularities, corruption, and waste in the sector could actually make it possible to lower electricity prices.