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After approximately 27 months, the government has increased the retail price of electricity in the country. The average price per unit (kilowatt-hour) of electricity for consumers has been raised from BDT 9.11 to BDT 10.63. This new tariff became effective from June 1. Depending on the customer category, electricity prices have increased by 10 to nearly 20 percent.
On Wednesday, the Bangladesh Energy Regulatory Commission (BERC) announced the new tariffs at a press conference. Simultaneously, the wholesale price of electricity and transmission charges have also been increased.
According to the new decision, electricity prices for residential customers have increased by an average of 16.68 percent. For lifeline customers, the price hike is 15 percent, while for various other tiers, prices have increased by up to approximately 20 percent. This is expected to create new pressure on the monthly expenses of low and middle-income families, according to concerned officials.
Currently, there are nearly 5 crore electricity customers in the country, of which over 4 crore are residential customers. Among them, approximately 1.79 crore customers are under the lifeline facility. It is anticipated that the impact of this price hike will be most significant on these limited-income and low-electricity-consuming families.
Under the new rates, electricity costs have risen for almost all customer categories, including agricultural irrigation, small and cottage industries, commercial establishments, hospitals, educational institutions, religious institutions, electric vehicles, and battery charging. The price per unit for agricultural irrigation has increased by BDT 0.79, and for hospitals and educational institutions, it has risen by up to approximately BDT 1.50.
Meanwhile, the average wholesale price of electricity has been increased from BDT 7.04 to BDT 8.39 per unit. Additionally, the transmission charge has been set at approximately BDT 0.39, up from BDT 0.31.
BERC Chairman Jalal Ahmed stated that the BDT 1.39 increase per unit at the wholesale level would generate an additional annual income of approximately BDT 14,200 crore. However, despite this, the government will still need to provide an annual subsidy of approximately BDT 41,000 crore to the power sector.
According to analysts, amidst the high prices of fuel oil, edible oil, and other daily necessities, this increase in electricity prices will further raise the cost of living for general people. Simultaneously, it could increase agricultural and industrial production costs, potentially creating new pressure on overall inflation.