BERC Hearing: Stakeholders Reject Bulk Power Price Hike Proposal

The opposition was voiced during a public hearing organized by the Bangladesh Energy Regulatory Commission (BERC) at the Krishibid Institution Bangladesh (KIB) auditorium in the capital’s Farmgate area today (Wednesday). BERC Chairman Jalal Ahmed and other commission members were present at the hearing.

During the session, the BERC Technical Evaluation Committee left the final decision on the tariff hike to the government, contingent upon the allocation of required state subsidies.

Citing the depreciation of the Taka against the US dollar and soaring fuel procurement costs, the BPDB proposed hiking the bulk electricity price by Tk 1.20 to Tk 1.50 per unit. Currently, BPDB sells wholesale electricity at Tk 7.04 per unit, requiring a government subsidy of Tk 5.47 per unit to bridge the production-to-sales deficit.

The BERC Technical Evaluation Committee noted that wholesale electricity prices would need to be hiked by 77 percent to entirely eliminate government subsidies.

Strongly opposing the move, Dr. Syed Mizanur Rahman, Organizing Secretary of the Consumers Association of Bangladesh (CAB), criticized the focus on reducing subsidies at the expense of ordinary citizens.

"Everyone is consumed with managing state funds or corporate margins, while completely ignoring the severe financial distress it will inflict on common people," he said.

He further urged BERC to overhaul its structural regulations to better protect consumers under the new governance landscape following the August 5 mass uprising.

Communist Party of Bangladesh (CPB) central leader Ruhin Hossain Prince termed the public hearing a "mere formality," arguing that the commission should immediately suspend such hearings until its internal regulations are reformed to ensure actual public interest.

Representing the manufacturing sector, Jalaluddin, a leader of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), warned that any further increase in power tariffs would deal a devastating blow to the industrial sector, which is already grappling with a downturn in exports.

"We expected electricity prices to go down under the new administration, but instead, we are facing proposals for further hikes," said Mohiuddin, a leader of the Mobile Phone Consumers' Association.

The hearing disclosed that the government provided approximately Tk 40,000 crore in power sector subsidies during the last fiscal year.

For the current fiscal year, the Power Division has requested an additional Tk 20,000 crore, potentially raising the total subsidy burden to Tk 60,000 crore.

Defending the proposal, BPDB Chairman Rezaul Karim clarified that the suggested tariff hike would not fully bridge the deficit but would help lower the government's subsidy burden from one-fifth to one-fourth.

BERC Chairman Jalal Ahmed assured stakeholders that the commission would carefully evaluate all arguments, feedback, and committee evaluations before delivering its final decision on the power tariff adjustment, reports UNB.