The authorities have increased wholesale electricity prices by an average of 19.92% per unit.
The Bangladesh Energy Regulatory Commission (BERC) made the announcement through a virtual press conference on Monday, in light of the Power Development Board (PDB) review application.
Through this, the BERC has fixed Tk6.20 per kilowatt hour (each unit), which was Tk5.17.
So far, wholesale electricity prices have increased by 118% in 10 phases in the last 11 years. On the other hand, prices of retail electricity increased eight times in 10 years.
BERC Member (Administration and Finance) Mohammad Abu Farooq said that the new fixed price would come into effect in December.
“Electricity distribution companies will have to pay for the electricity they purchase in December at the newly fixed price,” he told Dhaka Tribune.
“In that case, there will be no impact on retail electricity users. The distribution companies will not be able to sell more than the increased price without a new base,” he added.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that at present the bulk power tariff hike would have no impact on the masses.
“BERC will examine whether it will have any impact on retail consumers in future,” he told reporters yesterday at his ministry, following the announcement made by BERC.
Nasrul Hamid said the government wanted to ensure uninterrupted power supply to consumers. “That's why power tariff adjustment was needed,” he added.
On October 13, the BERC rejected PDB's proposal to increase wholesale electricity prices. The PDB then filed a review appeal on November 14, within 30 working days of the rejection of the proposal. Later, the BERC announced the decision without a public hearing on the matter.
In March 2020, the BERC hiked retail electricity tariffs following a public hearing. At the time, the average price of electricity was increased by 5.3% at the retail level and 8.4% at the wholesale level.
Through that decision, the price of retail electricity per unit was increased from Tk6.77 to Tk7.13 and at the bulk level from Tk4.77 to Tk5.17.
