Bangladesh Raises Electricity Prices by Up to 17 Percent Across All Tiers
Photo Collected
Bangladesh has implemented a significant hike in electricity tariffs, with officials citing budgetary requirements as the primary driver behind the swift adjustment. The Bangladesh Energy Regulatory Commission (BERC) announced on Wednesday that wholesale electricity prices will rise by 19.85 percent, while retail consumer tariffs will increase by an average of 16.68 percent. Additionally, transmission charges have been raised by 23.96 percent.
The new tariff structure, which is set to take effect starting in June, imposes varying increases across consumer tiers, ranging from 15 percent at the lowest level to 19.94 percent for the highest. Under the revised rates, the average wholesale price per unit has climbed from 7.00 taka to 8.39 taka, while the retail average per unit has risen from 9.11 taka to 10.63 taka. The cost for transmission has likewise increased from an average of 31 paisa per unit to approximately 39 paisa.
BERC Chairman Jalal Ahmed defended the expedited timeline of the decision during a press conference, asserting that the commission faced no external pressure. He clarified that the decision was made with the upcoming national budget in mind. While acknowledging that the price hike would inevitably increase the financial burden on citizens, Ahmed noted that a formal economic impact assessment had not been conducted prior to the decision, though he indicated such an evaluation remained a possibility for the future.
The price adjustments follow a period of financial strain for the Bangladesh Power Development Board (BPDB), which purchases electricity from public and private generators at fixed rates. Historically, the BPDB sells this power to six distribution companies at government-mandated wholesale prices that are lower than the cost of production, necessitating government subsidies to cover the shortfall. While distribution companies operate without such subsidies, they have faced increasing operational costs, prompting the Power Grid Bangladesh PLC (PGCB) to push for higher transmission charges.
The BERC’s latest move comes just months after a previous hike in February 2024, when consumer-level prices were increased by 8.5 percent through executive order. During the recent public hearings held on May 20 and 21, the BPDB had requested substantial wholesale price increases to offset mounting costs. The board projected that by the 2026-27 fiscal year, the total cost of power generation could reach approximately 143,108 crore taka, with the cost per unit climbing to roughly 12.91 taka.
0%
0%
0%
0%
