A proposal to increase electricity tariffs has drawn sharp criticism from consumer rights groups, business leaders and political representatives during a public hearing organised by the Bangladesh Energy Regulatory Commission (BERC), with many warning that higher power prices would intensify pressure on households and industries already struggling with rising costs.
The hearing was held as the Bangladesh Power Development Board (BPDB) sought approval for higher wholesale electricity tariffs, arguing that the country's power sector was facing a severe financial crisis driven by soaring fuel prices, currency depreciation and mounting subsidy requirements.
Representatives from the Consumers Association of Bangladesh (CAB), industrial bodies and political organisations opposed the proposal, saying the timing was inappropriate given the current economic situation.
CAB General Secretary Advocate Humayun Kabir Bhuiyan said marginal consumers were already under significant financial stress and that another increase in electricity prices would further burden ordinary people.
"This is not the right time to increase electricity prices," he said during the hearing.
Several consumer rights campaigners said there had been expectations that BERC would lower electricity tariffs, which they alleged had been kept artificially high during the previous administration. Instead, they claimed, the regulator was moving in the opposite direction.
Critics also accused BERC of lacking transparency and accountability, alleging that electricity theft and operational inefficiencies were often shifted onto consumers in the name of "system losses".
Professor Dr Syed Miznur Rahman of Daffodil University questioned the effectiveness of the hearing process, alleging that many irregularities in the sector were being carried out under legal cover.
He described the public hearing as "an eyewash serving vested interests".
Business leaders warned that higher electricity prices could significantly raise industrial production costs at a time when export-oriented industries were already under pressure.
Ruhin Hossain Prince, former general secretary of the Communist Party of Bangladesh (CPB), said the proposal failed to reflect public interest and called for the hearing process to be scrapped.
Mohammad Jamal Uddin Mia, director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the proposed tariff increase as "a final blow to an already struggling sector".
He said Bangladesh's export industry was already facing a downturn and warned that rising electricity costs would further weaken the competitiveness of local manufacturers in international markets.
"At one stage Bangladesh was second only to China in garment exports, but that position is gradually weakening," he said. "There is no room to increase electricity tariffs at this moment."
Defending the proposal, BPDB Chairman Mohammad Rezaul Karim said the power sector was facing projected deficits of Tk 62,000 crore in the current fiscal year and Tk 65,000 crore in the next fiscal year.
He said electricity prices were last revised in February 2024, while the costs of gas, coal and liquid fuel had increased sharply over the past two years.
Although diesel-based power plants are currently inactive, he said heavy fuel oil-based plants still need to operate to ensure uninterrupted electricity supply.
Karim added that many power producers purchase fuel in US dollars, meaning the depreciation of the taka and rising global fuel prices had significantly increased generation costs.
Rejecting claims that Bangladesh imports 70 percent of its electricity, he said only around 15 to 16 percent currently comes from India, while the rest is generated domestically, though much of that production still depends on imported fuel.
He stressed that the proposed tariff increase was not aimed at making the power sector profitable, but rather at reducing part of the government's subsidy burden.
"Even after the proposed adjustment, the government will still have to bear the majority of the subsidy burden," he said.
BERC Chairman Jalal Ahmed said excess installed generation capacity was one of the major reasons behind high electricity costs in Bangladesh. He also stressed the need for energy sector reforms and greater investment in renewable energy, particularly solar power, to reduce long-term production costs.
BERC is scheduled to hold another public hearing on proposed retail electricity tariff increases before making a final decision on the matter.
