BERC recommends Tk1.25 per unit power tariff hike to cut subsidy burden

The Bangladesh Energy Regulatory Commission (BERC) has recommended increasing electricity tariffs by a weighted average of Tk1.25 per unit in a move aimed at reducing the government’s subsidy burden in the power sector.

According to the proposal, the tariff adjustment could help cut annual subsidies by up to Tk13,000 crore.

The recommendation comes amid mounting financial pressure in the energy sector due to rising electricity generation costs, higher fuel import expenses and the depreciation of the taka against the US dollar.

Yesterday, the Bangladesh Power Development Board (BPDB) proposed increasing wholesale electricity tariffs by Tk1.20 to Tk1.50 per unit, warning that the sector’s deficit could widen further without a price adjustment.

The proposal has already drawn criticism from consumer rights groups, business leaders and political parties, who argue that another tariff hike would increase pressure on households and industries already struggling with high inflation and rising production costs.

More to follow…