The Bangladesh Energy Regulatory Commission (BERC) is expected to announce a major increase in electricity prices tomorrow.
The wholesale tariffs are likely to rise by around 19% and retail prices for consumers set to increase by between 15% and 20%, according to officials familiar with the process.
The Bangladesh Energy Regulatory Commission (BERC) is due to issue the order on 3 June, with the revised tariffs expected to take effect retrospectively from 1 June.
If approved, the move would mark one of the steepest electricity price hikes in Bangladesh’s history. The previous record increase dates back to December 2011, when wholesale tariffs were raised by 21.46% and retail prices by 14.16%.
The decision is also notable for the speed of the regulatory process. Public hearings on the proposed increases were held on 20 and 21 May, meaning the final order is expected within just four working days of the hearings — an unusually rapid turnaround for the regulator.
The Bangladesh Power Development Board (BPDB) had proposed increasing wholesale electricity prices by between Tk1.20 and Tk1.50 per unit, equivalent to a rise of 17% to 21%.
According to BPDB estimates, electricity generation costs for the 2026-27 fiscal year could reach Tk143.1 billion (bn), with average generation costs standing at around Tk12.91 per unit. Under current wholesale tariffs, projected revenue would amount to Tk77.6 bn, leaving a deficit of roughly Tk 65.5bn.
Officials said even the proposed tariff hikes would only marginally reduce the shortfall.
The last electricity price adjustment came in February 2024 through an executive order, when average wholesale tariffs were increased from Tk6.70 to Tk7.04 per unit.
BPDB data show electricity generation costs have risen sharply in recent years, climbing from Tk2.13 per unit in the 2019-20 fiscal year to nearly Tk13 per unit currently. Authorities attribute the increase to higher global fuel prices and the depreciation of the Bangladeshi taka against the US dollar.
However, critics argue that corruption, inefficient contracts and poor management have also contributed significantly to the sector’s mounting financial difficulties.
State-owned and private distribution companies have also sought retail tariff increases, claiming they are incurring heavy losses under the current pricing structure.
Dhaka Electric Supply Company (DESCO) requested a 9.67% increase, while Dhaka Power Distribution Company (DPDC) proposed a 6.96% rise. The Rural Electrification Board (REB) sought a 5.93% increase, citing losses across its rural electricity cooperatives.
Meanwhile, Power Grid Bangladesh PLC (PGCB), the country’s sole electricity transmission operator, proposed increasing transmission charges from around 30 paisa per unit to nearly 50 paisa.