A technical committee formed by the Bangladesh Energy Regulatory Commission (BERC) on Thursday recommended hike in power tariffs at the retail level too to cut the volume of subsidies.
Consumer-rights groups, business representatives, and other stakeholders, however, opposed the tariff hike proposals by the state-run Bangladesh Power Development Board (BPDB) and other state-owned power distribution companies, including West Zone Power Distribution Company Ltd (WZPDC), Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), and Rural Electrification Board (REB).
They sought to hike electricity tariffs at the retail level by 15 to 29 per cent for different categories of customers, including residential, irrigation pumps, construction sector, educational institutions, hospitals, commercial buildings, industries, and battery-charging stations.
The BERC organised the public hearing, which was the last day of the two-day hearing, with its Chairman Md Jalal Ahmed in the chair.
The combined loss of distribution companies in the fiscal year 2024-25 reached Tk 26.38 billion under the current tariff structure.
The companies fear that the deficit might exceed Tk 38 billion in the current fiscal year if upward tariff adjustments are not made.
Most of the companies want to implement the new prices from June 1.
The commission would make a decision on the tariff hike after an assessment, said the BERC chairman.
Ordinary consumers in Bangladesh are already under severe economic pressure due to high inflation, rising prices of essential commodities, increased fuel costs, and the overall rise in living expenses, the Consumers Association of Bangladesh (CAB) said in its submission to the regulator.
It warned that any further increase in electricity prices would worsen the financial burden on households and further fuel inflation.
The consumer rights body argued that inefficiencies in the power and energy sector, including system losses, lack of transparency, delayed projects, excessive expenditures, and the burden of capacity payments, should not be transferred to consumers.
Instead, it called for improved governance, accountability, and operational efficiency in the sector to reduce costs.
CAB also warned that higher electricity tariffs would raise production and supply costs across industries, agriculture, transport, and small businesses, ultimately increasing the prices of essential goods and services for consumers.
It added that low- and middle-income groups would face even greater hardship as living costs continued to outpace income growth.
Besides, it suggested the government prioritise long-term planning in the power sector, expand the use of renewable energy, improve transmission infrastructure, and reduce wastage to lower overall costs.
The organisation further recommended a consumer-friendly and realistic electricity pricing policy be developed through a transparent review of international market conditions, generation costs, capacity payments, system losses, and the overall financial management of the power sector.
CAB expressed hope that BERC would take into account the socio-economic realities faced by consumers, the country's broader economic situation, and public interest before making any decision and refrain from raising electricity prices.
Azizjst@yahoo.com
