The Bangladesh Power Development Board (PDB) has proposed a 17 to 21 percent increase in wholesale electricity tariffs, citing rising costs driven by energy supply disruptions and IMF conditions.
The proposal has been submitted to the Bangladesh Energy Regulatory Commission (BERC), whose chairman Jalal Ahmed confirmed receipt on Tuesday.
"Now the technical committee will scrutinise it," he said, adding that the proposal would later go through a public hearing.
A final decision is unlikely within the next month due to Eid-ul-Azha holidays, he said, noting that no proposals for retail tariff hikes have yet been received from distribution companies.
According to a ministry document from April, disruptions to the supply of liquefied natural gas (LNG), furnace oil and diesel have significantly increased power generation costs. The document also cites an IMF condition requiring Bangladesh to reduce power sector subsidies by 2025 to access the remaining loan funds.
PDB has outlined three possible tariff adjustment scenarios to reduce its projected losses.
If tariffs remain unchanged, the board estimates a deficit of Tk 564.75 billion in the 2025-26 fiscal year.
An increase of Tk 0.50 per unit would reduce the subsidy burden by Tk 52.44 billion, while a Tk 1 increase would cut it by Tk 104.89 billion. A Tk 1.20 increase could lower subsidy requirements by Tk 125.86 billion.
The Ministry of Power, Energy and Mineral Resources warned that without such adjustments, subsidy pressures would become unsustainable.
Alongside the wholesale proposal, the ministry has drafted possible retail price adjustments. Lifeline consumers using up to 75 units of electricity would be exempt, while other residential users could see increases ranging from Tk 0.70 to Tk 1.80 per unit, depending on consumption levels.
Revised rates are also being considered for commercial, industrial and institutional users.
The government last adjusted electricity tariffs on Feb 29, 2024, raising retail prices by 8.5 per cent and wholesale rates by 5 per cent. Although it had aimed to avoid further hikes for two years, officials say changing conditions have forced a review. �"bdnews24
