Electricity price hiked

The Bangladesh Energy Regulatory Commission has announced a significant increase in electricity tariffs, raising retail power prices by 16.68 percent and wholesale rates by 19.85 percent.

Under the new rates, retail consumers will have to pay an additional Tk 1.52 per kilowatt-hour (kWh), while wholesale electricity prices have been increased by Tk 1.39 per kWh.

BERC Chairman Jalal Ahmed announced the revised tariffs at a press briefing held at the commission's office on Wednesday. The new rates will take effect from the current June billing cycle.

The tariff adjustment follows a series of public hearings conducted by BERC on proposals to increase electricity prices at both the retail and wholesale levels.

Earlier, BERC's Technical Evaluation Committee estimated that retail electricity tariffs might need to be increased by around 13.9 percent. According to the committee's assessment, six power distribution utilities would require an additional Tk 11,925 crore in fiscal year 2025-26 to cover operational expenses beyond what is permitted under the existing 2024 tariff structure.

Consumer rights organizations and industrial groups had opposed the proposed tariff hikes, along with suggested restructuring of consumption slabs and the introduction of additional charges.

During a separate hearing on May 21, BERC also reviewed proposals concerning wholesale electricity and transmission tariffs. The commission's technical committee estimated that wholesale electricity prices would need to increase by nearly 78 percent if government subsidies were completely withdrawn.

The latest increase comes as the government seeks to address mounting costs in the power sector while balancing subsidy requirements and the financial sustainability of electricity distribution companies.