The Bangladesh Energy Regulatory Commission (BERC) today held a public hearing on a proposal to raise bulk electricity tariff in response to an appeal by the state-run Bangladesh Power Development Board (BPDB). Textile and apparel industry owners have expressed concern over the public hearing on the proposed 65.95 per cent bulk electricity price hike.

The worry is that the power tariff price hike amid an economic crisis would put industrial units under added pressure and such a decision would not be judicious.

In a statement, the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) said the electricity price hike in the current context would be considered a ‘suicidal move’ by the government.

"Bulk electricity price hike will have a multifaceted negative effect on the agriculture, service and manufacturing sectors. Even the ongoing trend of economic development will also be severely affected," it read.

The trade body requested the government not to accept the proposal to increase the price of electricity.

The BPDB had urged the energy regulator to set the bulk power tariff at Tk8.58 instead of the existing Tk5.17 per kilowatt-hour.

BPDB claims it will incur a loss of Tk30,251 crore in this fiscal if the bulk tariff is not raised.

Attributing its financial losses to increasing fuel cost and other soaring expenses, it said the production cost of electricity has gone up to Tk4.24 per unit in 2022 from Tk2.13 in fiscal 2019-20, according to Bangladeshi media reports.

Any rise in bulk tariff will be applicable to the power distribution companies as they are the bulk consumers.

All state-owned power distribution companies have already submitted their respective proposals to the BERC to raise power rates at the retail level.

Fibre2Fashion News Desk (DS)

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