Dhaka: Bangladesh Energy Regulatory Commission (BERC) today announced an upward adjustment in electricity prices at both consumer and wholesale levels in an effort to reduce the subsidy burden. "Per kilowatt of electricity price has been adjusted to Tk 10.63 from Tk 9.11 at the retail level and Tk 8.39 from Tk 7 at the wholesale level," stated BERC chairman Jalal Ahmed at a press briefing held at the BERC conference room. The new rates will be applicable from the billing month of June, he added. Despite the increase in electricity prices, the demand charge will remain unchanged, Ahmed noted. He further mentioned that the Bangladesh Power Development Board (BPDB) will be required to provide Tk 41,000 crore in subsidy annually following the price adjustment.
According to Bangladesh Sangbad Sangstha, the power price has been raised by 16.68 percent at the consumer level and 19.85 percent at the wholesale level. The wholesale electricity price has been increased by Tk 1.39, moving from Tk 7 to Tk 8.39, while the price at the retail level has been raised by Tk 1.52, from Tk 9.11 to Tk 10.63 per kilowatt. Prior to this decision, BERC held a two-day public hearing on May 20 and 21 regarding the proposal to increase electricity prices. Six power distribution companies had proposed price hikes ranging from Tk 0.85 to Tk 2.05 per unit. Specifically, BPDB requested an increase of Tk 0.85 per unit, BREB Tk 1.77, DPDC Tk 1.54, DESCO Tk 1.98, WZPDC Tk 1.39, and NESCO Tk 2.05. Nonetheless, BERC's technical committee suggested that the electricity prices for distribution companies could be increased by an average of Tk 1.25 per unit.
Most recently, in February 2024, an executive order had already increased the average wholesale electricity price from Tk 6.70 per unit to Tk 7.04.