Electricity price hike proposed, up to Tk 1.50 per unit

The government has initiated a process to raise electricity prices, with a proposal submitted to the Bangladesh Energy Regulatory Commission (BERC) seeking an increase of Tk 1.20 to Tk 1.50 per unit.

The Power Development Board (PDB) and the Power Division cited rising international fuel prices, LNG and coal cost volatility, and geopolitical instability in the Middle East as key reasons behind the proposed hike.

According to the proposal, retail electricity prices may increase by up to Tk 1.38 per unit, while wholesale and retail rates could rise by 17 to 21 percent on average. If approved, the new tariffs may take effect from early June.

BERC Chairman Jalal Ahmed confirmed receiving the proposal and said it is now under technical review. He added that public hearings will be held before a final decision is made.

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Officials said the price adjustment is aimed at reducing the growing subsidy burden, which is projected to exceed Tk 56,000 crore in the 2025–26 fiscal year if current tariffs remain unchanged. Government subsidies have already reached around Tk 36,000 crore.

The proposal also notes a significant gap of about Tk 5.5 per unit between production cost and retail tariff. Authorities argue that partial price adjustments could reduce fiscal pressure and improve financial stability.

The government is reportedly considering protecting low-use “lifeline” consumers, who use up to 75 units per month, while higher usage households, industries, and commercial users may face steeper increases.

If approved, this would mark the second major electricity price adjustment in a year, following a hike in February 2024.