The Consumers Association of Bangladesh (CAB) has strongly protested against a proposed increase in electricity tariffs during a public hearing organised by the Bangladesh Energy Regulatory Commission (BERC).
In its submission to the regulator, CAB said ordinary consumers in Bangladesh are already under severe economic pressure due to high inflation, rising prices of essential commodities, increased fuel costs and the overall rise in living expenses. It warned that any further increase in electricity prices would worsen the financial burden on households and further fuel inflation.
The consumer rights body argued that inefficiencies in the power and energy sector, including system losses, lack of transparency, delayed projects, excessive expenditures and the burden of capacity payments, should not be transferred to consumers. Instead, it called for improved governance, accountability and operational efficiency in the sector to reduce costs.
CAB also warned that higher electricity tariffs would raise production and supply costs across industries, agriculture, transport and small businesses, ultimately increasing the prices of essential goods and services for consumers. It added that low- and middle-income groups would face even greater hardship as living costs continue to outpace income growth.
During the hearing, CAB presented a six-point recommendation to BERC. It said electricity generation costs should be reassessed rationally before considering any tariff increase, particularly as international fuel prices have declined and consumers are not receiving the full benefit of lower global energy costs.
CAB said the burden of inefficiency, system losses, delayed projects, excessive spending and capacity charges in the power sector should not be imposed on ordinary consumers. It added that stronger governance and accountability measures are needed.
The organisation cautioned that higher electricity prices would increase operational costs for industry, agriculture, transport and small businesses, leading to higher commodity prices and negatively affecting consumers.
CAB said the cost of living has risen disproportionately compared with the income growth of low- and middle-income households, making any new tariff increase particularly burdensome.
It also suggested that the government should prioritise long-term planning in the power sector, expand the use of renewable energy, improve transmission infrastructure and reduce wastage to lower overall costs.
The organisation further recommended that a consumer-friendly and realistic electricity pricing policy should be developed through a transparent review of international market conditions, generation costs, capacity payments, system losses and the overall financial management of the power sector.
CAB expressed hope that BERC would take into account the socio-economic realities faced by consumers, the country’s broader economic situation and the public interest before making any decision, and refrain from raising electricity prices.