The Bangladesh Energy Regulatory Commission (BERC) is set to hold a two-day public hearing on May 20 and 21 over proposals to increase electricity tariffs at both bulk and retail levels.
The commission will hold hearings on May 20 on proposals submitted by the state-run Bangladesh Power Development Board (BPDB) to raise bulk electricity tariffs and by Power Grid Bangladesh PLC to increase transmission charges.
On May 21, the BERC will hold hearings on proposals for retail electricity tariff hikes submitted by the BPDB and other state-owned electricity distribution companies.
According to the proposals, the BPDB and other power marketing and distribution companies sought higher bulk electricity prices to address a projected Tk 655 billion deficit in the 2026-27 fiscal year.
The estimated electricity generation cost has been projected at Tk 1.43 trillion, with the average per-unit generation cost estimated at Tk 12.91. At the existing bulk or wholesale tariff rates, projected revenue would stand at Tk 775 billion.
The BPDB proposed that a Tk 1.20 per-unit increase, equivalent to around 17 per cent, could reduce the deficit by Tk 13.29 billion, while a Tk 1.50 per-unit hike, or around 21 per cent, could lower the deficit by Tk 16.66 billion.
Under existing laws, the BERC has sole authority to approve electricity tariff adjustments. Proposals usually undergo scrutiny by a technical committee before being presented at public hearings for stakeholder opinions.
However, sector insiders said forming a technical committee and fixing hearing dates within a week of receiving the proposals is unprecedented. The latest electricity tariff hike came on February 29, 2024, through an executive order, when wholesale electricity prices were increased by 5.0 per cent from Tk 6.70 to Tk 6.99 per unit. Retail-level electricity tariffs were also raised by an average of 8.50 per cent.
The BERC last increased bulk electricity tariffs on November 21, 2022, by 19.92 per cent after holding a public hearing, setting the rate at Tk 6.20 per unit.
azizjst@yahoo.com
