Bangladesh Energy Regulatory Commission is scheduled to hold on 18 May 2022 a public hearing on Bangladesh Power Development Board’s request for an electricity price hike. The BPDB submitted the proposal in January 2022 for, what it argued, managing the gradually deteriorating business losses. If the BERC raises the gas price by 100%, BPDB asks for a weighted average power price hike to BDT 9.14 per unit. If the gas price is increased by 125%, the tariff should be BDT 9.27 per unit. Presently, the weighted average unit price of electricity is BDT 5.17. The BERC had earlier completed the public hearing on gas price hike proposals by Petrobangla and its subsidiary companies. The BERC is yet to declare any new gas prices. The issue of price hikes has emerged after the rising prices of energy in the international market with the economic recovery efforts by the COVID-hit countries, followed by the Russia-Ukraine war. The local gas and electricity distribution companies argued that the government will have to pay huge subsidies unless the prices are increased. On the other hand, energy experts believe that the extra burden could be accommodated within the economy subject to addressing the wastage and corruption existing in the energy value chain.
The government should avert a decision that may add fuel to the already rising inflation in the country.