Bangladesh raises electricity prices to reduce subsidy burden
Bangladesh Energy Regulatory Commission (BERC) today adjusted electricity prices upward at consumer and wholesale levels aimed at reducing subsidy.
“Per kilowatt of electricity price has been adjusted at Tk 10.63 from Tk 9.11 at retail level and Tk 8.39 from Tk 7 at wholesale level,” BERC chairman Jalal Ahmed said.
Addressing a press briefing at BERC conference room, he said that the new price will be effective from billing month of June.
Although the electricity price was increased but the demand charge will be unchanged, the BERC chairman said, adding that Bangladesh Power Development Board (BPDB) will have to give Tk 41,000 crore as subsidy per year after effective of the new price.
According to the BERC announcement, the power price has been increased by 16.68 percent at consumer level and 19.85 percent at wholesale level. The wholesale electricity price has been increased by Tk 1.39 from Tk 7 to Tk.8.39, while price has been increased by Tk 1.52 from Tk 9.11 to Tk 10.63 at retail level.
Earlier, the BERC organized a two-day public hearing on the proposal to increase electricity prices on May 20 and 21.
There were six power distribution companies proposed to increase price from Tk 0.85 to Tk 2.05 per unit.
According to the proposal, Bangladesh Power Development Board (BPDB) requested to increase Tk 0.85 per unit, Bangladesh Rural Electrification Board (BREB) Tk 1.77, Dhaka Power Distribution Company (DPDC) Tk 1.54, Dhaka Electricity Supply Company (DESCO) Tk 1.98, West Zone Power Distribution Company Ltd (WZPDC) Tk 1.39 and Northern Electricity Supply PLC (NESCO) Tk 2.05.
However, the BERC's technical committee recommended that the electricity prices of distribution companies can be increased by an average of Tk 1.25 per unit.
Most recently, in February 2024, the average wholesale electricity price was increased from Tk 6.70 per unit to Tk 7.04 by an executive order.
