The government is considering an increase in wholesale and retail electricity tariffs to address mounting losses in the power sector, forming a high-level committee to review and propose adjustments.
Currently, the cost of electricity generation stands at Tk 12.10 per unit, while the wholesale tariff is Tk 7.04, resulting in a loss of over Tk 5 per unit for the Bangladesh Power Development Board (BPDB).
The committee, led by Finance Minister Amir Khosru Mahmud Chowdhury, includes the ministers for power, energy and mineral resources, and commerce, along with senior official from the finance, power and energy divisions.
It has been tasked with reviewing the current situation and recommending tariff adjustments to help manage the growing energy crisis and fiscal pressure.
The government’s move comes amid global energy market volatility triggered by Middle East tensions, which has significantly increased fuel import costs.
Power sector subsidies reached Tk 62,000 crore in FY2025, while Tk 36,000 crore has been allocated for the current fiscal year. However, the finance minister recently indicated that an additional Tk 36,000 crore may be required for electricity and energy subsidies this year.
BPDB’s outstanding liabilities have also risen to abound $4 billion, adding further pressure to the sector.
Under the law, any proposal to adjust tariffs must be submitted to the Bangladesh Energy Regulatory Commission (BERC), where it will undergo public hearings before final approval.
The last tariff adjustment was made on February 29, 2024, when wholesale electricity prices were increased by 5% to Tk 7.04 per unit, and retail tariffs were raised by an average of 8.5%.
