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.

On Wednesday, during an earlier hearing, the Bangladesh Power Development Board (PDB) proposed increasing wholesale electricity prices by Tk 1.20 to Tk 1.50 per unit. Power Grid Bangladesh PLC also proposed raising transmission charges by 19 paisa per unit.

The most recent increase in wholesale electricity prices took place in February 2024.

Those present at the public hearing included BERC Chairman Jalal Ahmed; Member (Finance, Administration, and Law) Md. Abdur Razzak; Member (Gas) Md. Mizanur Rahman; Member (Electricity) Mohammad Shahid Sarwar; and Member (Petroleum) Syeda Sultana Razia, among others.