Ordinance issued revoking govt's ability to raise power, energy prices bypassing BERC

An ordinance has been issued to repeal the provision that would have allowed the executive order to increase the prices of oil, gas, and electricity.

On Tuesday (27 August), the president issued the "Bangladesh Energy Regulatory Commission (Amendment) Ordinance, 2024."

On August 22, the draft ordinance was approved during a meeting of the advisory council of the interim government.

By amending the "Bangladesh Energy Regulatory Commission Act, 2003," the ordinance has abolished Section 34(k) which allowed for increasing the prices of oil, gas, and electricity by executive order.

The ordinance included Section 34(k) under the heading of government power to determine, readjust, or coordinate tariffs. This section stated, "Notwithstanding anything in the other provisions of this law, in special cases, the government, by notification in the official gazette, for the purpose of subsidy adjustment, in the public interest, to ensure uninterrupted energy supply based on demand for agriculture, industry, fertilizers, trade, and household needs, may take prompt effective measures for the production increase, transmission, transportation, and marketing of energy, and may determine, readjust, or coordinate tariffs for electricity production, energy transmission, storage, marketing, supply, distribution, and at the consumer level."