The Bangladesh Energy Regulatory Commission's (BERC) decision to raise electricity tariffs by an average of 16.68 percent at the consumer level and 19.18 percent at the wholesale level has added a new burden on citizens already struggling with inflation and economic uncertainty. What makes the increase particularly difficult to justify is that it comes at a time when load shedding continues across the country, forcing consumers to pay more for a service that remains unreliable.
Under the new rates, residential consumers will face substantial increases across all usage brackets. Lifeline customers using up to 50 units will see their bills rise by about Tk 35 per month, while households consuming up to 600 units could pay approximately Tk 1,644 more monthly. Commercial establishments, industries, irrigation users, hospitals, educational institutions, and religious organizations will also face higher costs. Since electricity is a key input for nearly every economic activity, the tariff hike is likely to trigger further increases in the prices of goods and services, fueling inflation.
BERC argues that the increase is necessary to reduce the financial deficit in the power sector. According to the commission, the average wholesale price has risen from Tk 7.04 to Tk 8.39 per unit, which is expected to generate an additional Tk 14,200 crore in revenue. Yet, even after this adjustment, the sector is projected to incur losses of around Tk 41,000 crore annually, requiring substantial government subsidies. This raises a fundamental question: why should consumers bear the burden of inefficiencies and structural weaknesses in the power sector?
The commission has announced some corrective measures, including reducing the Rate of Return for state-owned power companies from 12 percent to 6 percent and emphasizing merit-order dispatch to prioritize cheaper power generation. These are welcome steps, but they should have been implemented more aggressively and transparently before imposing another tariff increase on consumers.
The promise that future electricity generation from the Rooppur Nuclear Power Plant and expanded solar energy capacity may help stabilize or even reduce prices offers some hope. However, such prospects remain uncertain and do little to ease the immediate financial strain on households and businesses.
Reliable electricity is essential for economic growth and social welfare. Consumers can reasonably expect that higher prices will be matched by improved service quality and reduced load shedding. Without visible improvements in power supply, public frustration is likely to grow. The government and BERC must therefore ensure greater transparency, efficiency, and accountability in the energy sector so that consumers receive fair value for the higher costs they are now being asked to bear.
