Power tariffs set for fresh hike today

Electricity consumers across Bangladesh are likely to pay higher power bills as the energy regulator is set to announce new bulk and retail tariffs.
The Bangladesh Energy Regulatory Commission (BERC) is scheduled to announce the revised tariffs at a press conference at its headquarters in the capital this afternoon (Wednesday).
The new tariff may take retrospective effect from June 1.
The commission earlier held a two-day public hearing on power tariff hike proposals submitted by the state-run Bangladesh Power Development Board (BPDB) and other state-owned distribution utilities, including West Zone Power Distribution Company Ltd, Dhaka Power Distribution Company Ltd, Dhaka Electric Supply Company Ltd and the Rural Electrification Board, on May 20 and May 21.
The BPDB and its subsidiary companies sought increases in retail electricity tariffs ranging from 15 per cent to 29 per cent for different categories of consumers, including households, irrigation pumps, the construction sector, educational institutions, hospitals, commercial establishments, industries and battery-charging stations.
The combined losses of the distribution companies reached Tk 26.38 billion in fiscal year 2024-25 under the existing tariff structure.
The utilities fear that the deficit could exceed Tk 38 billion in the current fiscal year, FY 2025-26, if tariffs are not adjusted upward.
In their proposals, the BPDB and other power distribution and marketing companies also sought an increase in bulk electricity prices to help address a projected deficit of Tk 655 billion in FY 2026-27.
The estimated cost of electricity generation has been put at Tk 1.43 trillion, with the average per-unit generation cost estimated at Tk 12.91.
At the current bulk tariff rate, projected revenue would amount to Tk 775 billion.
The BPDB estimated that an increase of Tk 1.20 per unit, equivalent to about 17 per cent, could reduce the deficit by Tk 13.29 billion, while a Tk 1.50 per-unit increase, or around 21 per cent, could lower the shortfall by Tk 16.66 billion.
The most recent electricity tariff increase took place on February 29, 2024 through an executive order, when the wholesale tariff was raised by 5.0 per cent from Tk 6.70 to Tk 6.99 per unit, while retail tariffs increased by an average of 8.5 per cent.
Before that, BERC revised the bulk electricity tariff on November 21, 2022, raising it by 19.92 per cent to Tk 6.20 per unit following a public hearing.

Azizjst@yahoo.com