Bulk electricity prices rise 19.92% | Rare Techy

Electricity prices at the wholesale level increased by 19.92 percent.

The price per unit has been fixed at Tk 6.22, up from Tk 5.17 earlier.

The Bangladesh Energy Regulatory Commission (BERC) took a decision today in response to a review petition filed by the Bangladesh Power Development Board (PDB) to increase electricity prices at the wholesale level. The decision came after the IMF approved Bangladesh loam, and IMF officials met with BERC and PDB, where they discussed the price formula. Experts worry the decision will worsen the livelihoods of people already suffering from high electricity prices.

“Power sector gets huge subsidy due to capacity cost. Around Tk 50,000 Cr has to be paid in last 11 years to power sector, including power plants which are not producing as well,” said former Professor Anu Muhammad, member secretary. National Committee to Protect Oil, Gas, Mineral Resources, Electricity and Ports.

“The whole power plan of the government is not to produce electricity for the people, but to keep giving money to the electricity companies to make a profit. The victims, as a result, are the people, in the end,” he added.

“These price hikes fuel corruption,” said Professor M Shamsul Ala, Senior Vice President of the Bangladesh Consumers Association.

Earlier, Shamsul Alam had submitted a proposal to BERC to gradually reduce the subsidy, so as not to increase the price for consumers. Their main logic underlined how corruption in various parts of the energy sector.

Alam also criticized the government for initially raising prices citing the rise in global fuel and LNG prices. He also added that the long-term effects of continuous price increases will lead to a dollar crisis.