Electricity price hiked, consumers to pay Tk 1.52 more per kilowatt-hour

Bangladesh Energy Regulatory Commission (BERC) has raised electricity tariffs at the wholesale, transmission and retail levels, increasing the weighted average retail power price by Tk 1.52 per unit -- from Tk 9.11 per kilowatt-hour (kWh) to Tk 10.63 per kWh.

Under the new order, the weighted average wholesale electricity tariff has been increased by Tk 1.39 per unit -- from Tk 7.00 per kWh to Tk 8.39 per kWh.

At a press briefing at its office today, BERC Chairman Jalal Ahmed announced the new rates, saying they would take effect from the ongoing June billing cycle.

The latest adjustment comes after a series of tariff proposals submitted by power sector entities in early May and public hearings held on May 20-21.

BERC said it reviewed the applications, supporting documents and opinions presented during the hearings before reaching its decision. The commission also considered power generation, procurement and import costs, transmission and distribution expenses, as well as government subsidies provided to the Bangladesh Power Development Board (BPDB).

Despite the increase, the commission said BPDB would still require around Tk 41,000 crore in annual government subsidies to cover its remaining financial deficit.

The weighted average transmission charge, commonly known as the wheeling charge, has also been raised by Tk 0.0751 per unit to Tk 0.3886 per kWh from the existing Tk 0.3135 per kWh.

The commission, however, kept demand charges for all consumer categories unchanged.

The tariff revision follows proposals submitted by BPDB, Power Grid Bangladesh PLC, and power distribution utilities, including Dhaka Power Distribution Company, Dhaka Electric Supply Company, Northern Electricity Supply PLC, West Zone Power Distribution Company and the Bangladesh Rural Electrification Board.