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Govt hikes bulk, retail power tariffs by 5%

Staff Correspondent
31 Jan 2023 09:59:29 | Update: 31 Jan 2023 21:55:12
Govt hikes bulk, retail power tariffs by 5%
— Representational Photo

The government has raised the electricity prices by 5 per cent at the retail and wholesale levels, effective from February 1.

The Power Division — through administrative order and in two separate gazette notifications — raised the tariff.

According to the new order, the retail tariff was raised at different levels of consumers. The tariff was raised for lower-level consumers by an average of 5 per cent to Tk 4.14 per unit (each kilowatt hour) from Tk 3.94 per unit. Bulk tariff was raised by 8.06 per cent to Tk 6.70 from Tk 6.20 per unit.

Enhancement in bulk tariff means, the distribution companies will purchase electricity by an increased rate of Tk 0.50 per unit from Bangladesh Power Development Board (BPDB) while enhancement in retail tariff means, consumers will have to pay enhanced rate for using electricity.

Earlier on January 13, the government raised the electricity tariff by 5 per cent at the retail level with effect from January 1.

At that time, the average tariff for all consumers went up by Tk 0.36 to Tk 7.49 from Tk 7.13.

On November 21, the bulk power tariff was hiked by 20 per cent to Tk 6.20 per kilowatt hour by Bangladesh Energy Regulatory Commission (BERC) with effect from December 1.

The government recently amended the BERC Act empowering the Power Division to raise power, gas and petroleum fuel by administrative power any time it wants.

Applying that amended Act, the new gazette notification was issued on January 30 to raise the electricity tariff at bulk and retail levels, bypassing the authorities of the energy regulator.    

Meanwhile, energy experts believe the tariff enhancement decision came in compliance with the conditions of the International Monetary Fund (IMF) that recently approved $4.5 billion in loan to Bangladesh.