Staff Reporter, Dhaka
The government has taken a fresh initiative to raise electricity tariffs. A proposal to adjust prices at both wholesale and retail levels was submitted to the Bangladesh Energy Regulatory Commission (BERC) by the Power Division on Monday.
According to the proposal, wholesale electricity prices may increase by around Tk1.20 to Tk1.50 per unit, while retail tariffs could rise by up to Tk1.38 per unit.
Under the plan, electricity prices will be set at different rates based on consumption levels. However, low-usage lifeline consumers are expected to be exempted from the proposed increase.
As per standard procedure, power distribution companies submit tariff proposals to BERC. The Bangladesh Power Development Board (BPDB) and other distribution entities have already begun preparing their proposals in line with directives from the Power Division, and submissions are expected within this week.
BERC Chairman Jalal Ahmed said the proposals will be reviewed in accordance with the law once received. BPDB Chairman Rezaul Karim confirmed that work is underway to finalize the proposal. The commission will hold public hearings before announcing new tariffs, which could take effect from early June if approved.
The Power Division said the move is aimed at addressing rising fuel import costs, a significant gap between production costs and selling prices, and the growing burden of subsidies. A high-level committee led by the finance minister had earlier reviewed the sector’s financial pressures and recommended the adjustment.
Under the proposal, consumers using more than 400 units per month may face an increase of up to Tk 1.38 per unit, while those using between 76 and 400 units could see a rise of around 70 paisa. Consumers using up to 70 units—classified as lifeline users—are likely to remain unaffected for now.
Currently, Bangladesh has around 49.7 million electricity consumers, of whom about 37 percent may be directly affected by the price hike. The remaining 63 percent, mostly low-usage consumers, are expected to be less impacted. However, analysts warn that higher electricity costs in industrial and commercial sectors could eventually lead to increased prices of goods and services.
At present, the average cost of electricity generation exceeds the price charged to consumers by approximately Tk 5.50 per unit, increasing reliance on subsidies. In the ongoing 2025–26 fiscal year, BPDB’s projected deficit may reach Tk 56,475 crore, with an additional Tk 15,000 crore subsidy required due to high global fuel prices. The government has already allocated Tk 36,000 crore for this sector.
A significant portion of fuels used in power generation—such as LNG, coal, and oil—is imported, making production costs sensitive to global price fluctuations. Additionally, the government must pay “capacity charges” to several power plants even when they are not fully operational, further adding to financial pressure.
Major projects such as Meghnaghat, the coal-based RPCPL-Norinco plant, and the Rupsha 800 MW power plant have also contributed to rising costs.
The last electricity price adjustment took place in February 2024, when retail tariffs were increased by an average of 8.50 percent to Tk 8.95 per unit, and wholesale prices rose by 5.07 percent to Tk 7.04 per unit.