In a significant development, the government has officially issued a gazette notification announcing an 8.50% increase in power tariffs at the retail level. Following a prior announcement of a 5% bulk tariff hike, this move aims to address financial challenges in the power sector. The new rates will be applicable retroactively from February 1, affecting both retail and lifeline subscribers.
As per the gazette notification, the per-unit cost of electricity at the retail level will rise by an average of Tk0.70, reaching Tk8.95 from the previous rate of Tk8.25. Lifeline subscribers, in turn, will witness an increase of Tk0.28 per unit, with their new rate set at Tk4.63, up from Tk4.35.
The Ministry of Power, Energy, and Mineral Resources clarified that the tariff adjustment impacts approximately 1.65 crore lifeline consumers. Earlier, the government had increased bulk tariffs by 5%, affecting distribution entities and large industries directly linked to the Bangladesh Power Development Board (BPDB).
The gazette notification specifies that distribution entities, including BREB, DPDC, Desco, Nesco, WZPDCL, and BPDB, will purchase electricity from BPDB at varying rates – Tk8.44 at 230 kV, Tk8.47 at 132 kV, and Tk7.62 at 33 kV.
This move follows State Minister Nasrul Hamid’s earlier statements on accelerating the power tariff increase from February 1, contrary to initial plans for March 1. The tariff adjustments range from Tk0.34 (5%) to Tk0.70 per unit (8.5%), based on consumer consumption volumes. Additionally, gas prices for power plants will rise by Tk0.75 per unit.
The government aims to introduce dynamic fuel pricing starting March 1, aligning petroleum fuel prices with international market fluctuations. Minister Nasrul Hamid emphasized these measures to mitigate government losses attributed to a lower electricity selling price.
The BPDB’s Annual Report 2022-23 highlights the financial challenges faced by the power sector, with a significant loss of Tk47,788 crore for the fiscal year. The move towards tariff adjustments is part of the government’s strategy to reduce subsidies and address the financial imbalance in the power sector. Stay tuned for further updates on this crucial development.
