B Mirror Report:  Bangladesh Power Development Board (BPDB) has proposed increasing bulk electricity tariffs by up to 21 percent in a move aimed at reducing the government’s growing subsidy burden, drawing sharp criticism from businesses, consumer groups and other stakeholders during a public hearing on Wednesday.

The hearing, organized by the Bangladesh Energy Regulatory Commission (BERC) at the KIB Auditorium in Dhaka, was chaired by BERC Chairman Jalal Ahmed.

Presenting the proposal, BPDB Chairman Md Rezaul Karim said the tariff adjustment was necessary to ease pressure on the national budget, although even the proposed hike would reduce government subsidies by only about one-fourth.

BPDB projected a deficit of Tk 655 billion for the 2026–27 fiscal year, citing rising power-generation costs. According to the board, electricity generation expenses are estimated at Tk 1.43 trillion, with per-unit production cost standing at Tk 12.91. Under existing wholesale rates, projected revenue would reach only Tk 775 billion.

To narrow the gap, BPDB proposed raising bulk electricity prices by Tk 1.20 per unit, or 17 percent, which could reduce the deficit by Tk 13.29 billion. A higher increase of Tk 1.50 per unit, or 21 percent, could cut the deficit by Tk 16.66 billion.

The proposal faced strong resistance from political leaders, business representatives and consumer-rights advocates, who accused the authorities of passing the burden of “mismanagement and corruption” onto consumers.

Critics warned that higher electricity tariffs would intensify inflationary pressure at a time when commodity prices are already rising. Business leaders also cautioned that increased energy costs would hurt the competitiveness of local industries and production sectors.

The public hearing also discussed proposed retail-level electricity tariff hikes submitted by BPDB and state-owned power distribution companies.

Bangladesh last increased electricity tariffs on February 29, 2024, when wholesale rates rose by 5 percent from Tk 6.70 to Tk 6.99 per unit, while retail prices increased by an average of 8.5 percent through an executive order.

Before that, BERC raised bulk electricity tariffs by nearly 20 percent in November 2022 following a public hearing.