PDB proposes BERC to raise bulk power tariff

State-owned Power Development Board (PDB) has submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) seeking a hike in the bulk tariff of electricity.
According to official sources, the PDB has appealed to the regulator to raise the bulk power tariff to Tk 5.51 per kilowatt hour (each unit) from the existing rate of Tk 4.70 per unit, according to a news agency.
The proposal, sent recently to the BERC, also urged the watchdog body to give effect to the proposed hike from January next year.
It said that if the bulk power tariff is not raised, the government subsidy to the power sector will go up to Tk 70 billion. But once the bulk power tariff is raised, the subsidy will come down to Tk 40 billion.
Official sources said that the PDB would have to incur a loss of Tk 1.85 per unit as the electricity is being sold to distribution companies and other bulk consumers at Tk 4.70 per unit while the production cost is Tk 6.54 per unit.