Power distribution companies in Bangladesh on Thursday placed fresh proposals before the Bangladesh Energy Regulatory Commission (BERC) seeking revisions to retail electricity tariffs for the 2025-26 fiscal year, with projected distribution costs ranging between Tk0.85 and Tk2.05 per unit.
The proposals were presented on the concluding day of a two-day public hearing held at the Krishibid Institution Bangladesh auditorium in Dhaka under the chairmanship of BERC Chairman Jalal Ahmed.
Six major power distribution entities - Bangladesh Power Development Board (BPDB), Bangladesh Rural Electrification Board (BREB), Dhaka Power Distribution Company (DPDC), Dhaka Electric Supply Company (DESCO), West Zone Power Distribution Company (WZPDCL), and Northern Electricity Supply Company (NESCO) - submitted separate cost projections and tariff revision requests.
According to the submissions, NESCO proposed the highest distribution cost at Tk2.05 per unit, followed by DESCO at Tk1.98, BREB at Tk1.77, DPDC at Tk1.54, WZPDCL at Tk1.39 and BPDB at Tk0.85 per unit.
However, BERC’s technical evaluation committee recommended comparatively lower estimates, placing the weighted average net distribution cost at Tk1.25 per unit for the upcoming fiscal year.
The committee estimated the net distribution cost for BPDB at Tk0.75 per unit, BREB at Tk1.39, DPDC at Tk1.18, DESCO at Tk1.16, WZPDCL at Tk1.33 and NESCO at Tk1.43.
According to committee findings, the combined distribution cost of the six utilities would reach Tk11,927 crore against projected electricity sales of 95,613 million units in FY2025-26.
The report also noted that the six utilities collectively served over 49.8 million customers as of March this year, including more than 42.5 million residential users and around 28 million lifeline consumers. BREB alone accounted for over 39.1 million subscribers nationwide.
The technical committee made several policy recommendations during the hearing. It advised conducting an independent regulatory impact assessment before reducing the approved load limit for low-tension consumers from 80 kilowatts to 50 kilowatts.
It also suggested that private hospitals, medical colleges and educational institutions should not be treated as commercial consumers for electricity tariff purposes.
In addition, the committee recommended that utilities avoid determining excess load for consumers without demand meters solely based on consumption patterns. Instead, it proposed gradual installation of demand meters alongside periodic load assessments.
The committee further suggested considering a flat electricity tariff for slum residents and introducing measures to stop commercial charging of auto-rickshaws through residential connections.
During the hearing, consumer rights activists, academics and business leaders strongly opposed any move to increase electricity prices further. Several speakers blamed system inefficiencies, inflated project costs, capacity payments and transmission losses for the sector’s financial difficulties.
Daffodil International University teacher Syed Mizanur Rahman criticised the inclusion of corporate taxes and rate of return in electricity pricing, arguing that public utility services should operate on a non-profit basis.
Former Communist Party of Bangladesh general secretary Ruhin Hossain Prince called for reducing electricity prices instead of increasing them and proposed free electricity for low-income consumers using up to 75 units per month.
Participants also urged authorities to review agreements with independent power producers and rental power plants, alleging that excessive capacity payments have become a major burden on the economy.
At the conclusion of the hearing, BERC Chairman Jalal Ahmed said the commission would examine all documents and opinions submitted before making a final decision. Stakeholders have been invited to submit additional written observations by 23 May.
He also cautioned that future projects in the power, gas and oil sectors involving financial liabilities must obtain BERC’s opinion before being forwarded to the Planning Commission, warning that growing capacity payments are becoming increasingly harmful for the country.
