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The country’s energy regulator will hold a two-day public hearing on May 20 and 21 to justify tariff-hike proposals at the bulk and retail levels.
The Bangladesh Energy Regulatory Commission (BERC) will hold the public hearing on the proposals of the state-run Bangladesh Power Development Board (BPDB) to raise the bulk tariff and of Power Grid Bangladesh PLC to raise the transmission charge on May 20.
The commission will hold the public hearing on retail power tariff hikes against the proposals of the BPDB and other state-run electricity distribution companies on May 21.
In their proposals, the BPDB and other power marketing and distribution companies have proposed raising bulk electricity prices to address a projected Tk 655 billion deficit in fiscal year 2026–27.
The estimated generation cost is Tk 1.43 trillion, with per-unit electricity costing Tk 12.91.
At current bulk, or wholesale, rates, revenue would be Tk 775 billion.
The BPDB proposed that a Tk 1.20, or 17 per cent, increase per unit could reduce the deficit by Tk 13.29 billion, while a Tk 1.50, or 21 per cent, hike could cut it by Tk 16.66 billion.
Under the existing law, the BERC holds sole authority to approve electricity price hikes.
Tariff adjustment proposals undergo review by a technical committee and are presented at public hearings before decisions are made.
However, forming a committee and setting a hearing date within a week of receiving the proposal is unprecedented.
Most recently, power tariffs were hiked on February 29, 2024, through an executive order, when the wholesale electricity price was raised by 5.0 per cent, from Tk 6.70 to Tk 6.99 per unit, while retail-level prices rose by an average of 8.50 per cent.
The BERC last raised the bulk tariff on November 21, 2022, by 19.92 per cent, setting the rate at Tk 6.20 per unit after a public hearing.