A fresh move to revise electricity tariffs is underway, as the government has placed a proposal before the Bangladesh Energy Regulatory Commission (BERC) to increase prices at both wholesale and retail levels.
The proposal, submitted by the Power Division on Monday, suggests raising wholesale electricity prices by approximately Tk1.20 to Tk1.50 per unit. At the consumer level, retail tariffs could go up by as much as Tk1.38 per unit, depending on usage.
Officials on Tuesday said the proposed pricing structure will be tiered, meaning consumers will be charged different rates based on how much electricity they use. However, those classified as lifeline consumers - households using up to 70 units per month - are expected to remain exempt from any increase for now.
As per regulatory procedures, distribution companies are required to submit their own tariff proposals to the commission. The Bangladesh Power Development Board (BPDB) and other power distribution entities have already begun preparing their submissions, which are expected to be filed within the week.
BERC Chairman Jalal Ahmed said the commission will review all proposals in accordance with legal provisions before moving forward. Once submissions are complete, public hearings will be held prior to any final decision. If approved, the revised tariffs could come into effect as early as June.
Authorities say the proposed adjustment is driven by mounting financial pressure in the power sector. Rising global fuel prices, a widening gap between production costs and consumer tariffs, and increasing subsidy burdens have all contributed to the situation. A high-level committee led by the finance minister had earlier assessed these challenges and recommended price revisions.
Under the proposal, consumers using more than 400 units monthly may face the highest increase, up toTk 1.38 per unit, while those consuming between 76 and 400 units could see a rise of around 70 paisa. Although only about 37 per cent of the country’s roughly 4.97 crore electricity users may be directly affected, analysts caution that higher industrial and commercial tariffs could eventually lead to broader price increases in goods and services.
Currently, electricity generation costs exceed consumer prices by about Tk5.50 per unit, putting significant strain on government finances. In the 2025-26 fiscal year, BPDB’s projected deficit may reach Tk56,475 crore, with an additional Tk15,000 crore required in subsidies due to high fuel costs. The government has already allocated Tk36,000 crore to support the sector.
Heavy reliance on imported fuels such as LNG, coal and oil has made electricity production costs highly sensitive to global market fluctuations. Additionally, capacity payments to power plants - even when they are not fully operational - continue to add to the financial burden. Large-scale projects, including Meghnaghat, the RPCPL-Norinco coal plant, and the Rupsha 800 MW facility, have further increased overall costs.
The most recent tariff adjustment took place in February 2024, when retail electricity prices rose by an average of 8.50 per cent and wholesale rates increased by 5.07 per cent.
.jpg "LPG cylinder price reduced to Tk1,885 in Bangladesh")
