Bangladesh has sharply increased electricity prices at both wholesale and retail levels, raising concerns over the growing cost of living and industrial production in the country as authorities acknowledged they had not conducted any formal assessment of the impact on consumers.
The Bangladesh Energy Regulatory Commission (BERC) announced on Wednesday that the average retail electricity tariff would rise by Tk1.52 per unit to Tk10.63 per kilowatt-hour, while wholesale prices would increase by Tk1.39 per unit to Tk8.39.
The latest adjustment represents an average increase of 16.68% for retail consumers and 19.85% at the wholesale level. Power transmission charges have also been raised by nearly 24% to Tk0.3886 per unit.
The revised tariffs will take effect from June.
Speaking at a press conference in Dhaka, BERC Chairman Jalal Ahmed said the increase was necessary to address rising power generation and supply costs and to ease mounting financial pressure on the energy sector.
He said the state-owned Bangladesh Power Development Board (BPDB) would earn an additional Tk14,200 crore from the latest adjustment. However, he acknowledged that the government would still need to provide around Tk41,000 crore in subsidies to the sector.
The regulator also admitted that no economic impact analysis on consumers had been carried out before the tariff revision.
“We are hopeful the power tariff will come down after commissioning of the Rooppur Nuclear Power Plant as well as a series of renewable energy projects initiated by the government,” Ahmed said.
He added that BERC would instruct power generation and distribution companies to reduce operational costs and capacity payments in an effort to lower electricity prices in the future. The regulator would also monitor merit-order dispatch to prioritise electricity generation from lower-cost power plants, he said.
Responding to criticism over the speed of the tariff adjustment, Ahmed said the regulator had considered the upcoming national budget while revising the prices.
“We are trying to adjust the tariffs with credibility and accountability,” he said.
Under the new pricing structure, consumers across all categories — including residential users, farmers, industries, commercial establishments, hospitals, educational institutions, irrigation systems and electric vehicle charging stations — will face higher electricity bills.
Lifeline consumers, covering low-income households receiving subsidised electricity, will face the lowest increase of around 15%, while some categories will see hikes of nearly 20%.
Residential electricity prices have increased by between Tk0.69 and Tk2.74 per unit depending on usage levels.
Consumers using up to 50 units per month will now pay Tk5.32 per unit, while those using more than 600 units will pay Tk17.35 per unit — the steepest increase under the revised tariff structure.
Agricultural irrigation electricity prices have risen to Tk6.04 per unit, while commercial users will now pay Tk15.36 per unit, an increase of more than 18%.
Industrial tariffs have also increased significantly. Consumers connected through 33kV lines will pay Tk12.75 per unit, while users on 132–230kV connections will pay Tk12.66 per unit.
Officials warned that the increase could further raise household expenses and production costs across the economy at a time when Bangladesh is already grappling with inflationary pressure and foreign exchange constraints.
The tariff decision follows public hearings held by BERC in April, during which six state-run and private power distribution companies proposed retail tariff increases ranging from Tk0.85 to Tk2.05 per unit.