B Mirror Report:  Today (Wednesday) marks the start of a two-day public hearing on planned increases in energy tariffs at both bulk and retail levels. State-run power companies are requesting higher rates in order to address growing financial losses.

The Bangladesh Energy Regulatory Commission (BERC) is scheduled to hold hearings on proposals submitted by the Bangladesh Power Development Board (BPDB) to raise bulk electricity tariffs and by Power Grid Bangladesh PLC to increase transmission charges.

On Thursday, the commission will hear proposals from BPDB and other state-owned electricity distribution companies seeking increases in retail electricity tariffs.

According to officials, the proposed tariff adjustments are aimed at reducing an estimated Tk655 billion deficit projected for the 2026–27 fiscal year.

BPDB estimates that electricity generation costs will reach Tk1.43 trillion, with the average generation cost standing at Tk12.91 per unit. At the current bulk tariff rate, projected revenue would amount to around Tk775 billion.

To narrow the gap, BPDB has proposed two possible tariff adjustment options. A Tk1.20 per unit increase, equivalent to about 17 percent, is expected to reduce the deficit by Tk13.29 billion. Meanwhile, a Tk1.50 per unit hike, or roughly 21 percent, could lower the shortfall by Tk16.66 billion.

Under existing laws, BERC is the sole authority responsible for approving electricity tariff changes. Before any decision is made, proposals are reviewed by a technical committee and discussed at public hearings involving stakeholders and consumers.

The most recent power tariff increase came on February 29, 2024, through an executive order, when bulk electricity prices were raised by 5 percent from Tk6.70 to Tk6.99 per unit, while retail tariffs increased by an average of 8.5 percent.

Before that, BERC raised bulk electricity tariffs by nearly 20 percent on November 21, 2022, following a public hearing, setting the rate at Tk6.20 per unit.