Public hearing begins on proposal to raise electricity price by up to 21pc

A public hearing on the proposed hike in wholesale electricity prices began on Wednesday, May 20, at the Krishibid Institution auditorium in the capital.

During the hearing, the Power Development Board proposed increasing wholesale electricity prices by 21 to 29 per cent, with the new rates proposed to take effect from June 1.

According to PDB, the current wholesale price per unit of electricity is Tk 7.04, while the average production cost stands at Tk 13.19. The gap has resulted in an annual deficit of approximately Tk 60,000 crore. Due to the ongoing war in the Middle East and international market conditions, the deficit could rise to Tk 63,000 crore this fiscal year.

A Tk 1.20 increase per unit could reduce the deficit by around Tk 13,298 crore, while a Tk 1.50 increase could cut the deficit by over Tk 16,000 crore.

The hearing was chaired by Bangladesh Energy Regulatory Commission Chairman Jalal Ahmed, with representatives of consumer rights groups and various stakeholders in attendance.

The last adjustment of wholesale electricity prices was made in February 2024.