Electricity price hike order to be issued tomorrow

A new order on increasing electricity prices will be issued tomorrow, Wednesday.

The Bangladesh Energy Regulatory Commission (BERC) will formally announce the decision at a press conference at 3:00 PM on Wednesday (June 3).

Sources say electricity prices may rise by an average of up to 20 percent, and the new tariff is expected to take effect from June.

However, there is some relief for low-income consumers, as no changes are being made to the ‘lifeline’ category for now. Consumers using 0 to 75 units of electricity will continue to receive the existing benefits.

A BERC official said that all preparations for the tariff adjustment were completed before the Eid holidays, and only the formal announcement remains. The new rates are planned to take effect from June.

According to sources, the move to adjust electricity prices has been taken as part of conditions set by the International Monetary Fund (IMF). In this regard, a cabinet committee led by Finance Minister Amir Khosru Mahmud Chowdhury was formed two months ago. The committee recommended increasing electricity prices by Tk 1 to Tk 1.50 per unit and advised that pricing be determined through BERC as per regulations.

BERC held a two-day public hearing on April 20 and 21 regarding the proposed electricity price hike. During the hearing, six power distribution companies proposed increasing tariffs by 85 paisa to Tk 2.05 per unit.

According to the proposals, the Bangladesh Power Development Board (PDB) sought an increase of 85 paisa per unit, REB Tk 1.77, DPDC Tk 1.54, DESCO Tk 1.98, WZPDCL Tk 1.39, and NESCO Tk 2.05 per unit.

However, BERC’s technical committee has recommended an average increase of Tk 1.25 per unit for distribution companies. The commission is expected to adopt this recommendation.

A BERC commissioner, speaking on condition of anonymity, said the final decision will be made after considering all stakeholders’ opinions. However, the per-unit increase is unlikely to be less than Tk 1.

He added that consumers using up to 200 units will face relatively lower increases, while those using 200–400 units and 400–600 units will see gradually higher rates. The highest impact will fall on consumers using more than 600 units of electricity.