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Power tariff further raised at both bulk and retail levels, effective from tomorrow

31 January 2023
Power tariff further raised at both bulk and retail levels, effective from tomorrow

File photo

UNB, Dhaka :

Electricity tariff was raised at both retail and bulk levels, with effect from tomorrow (February 1).

The Power Division — through administrative order and in two separate gazette notifications — raised the tariff.

According to the new order, the retail tariff was raised at different levels of consumers. The tariff was raised for lower level consumers by an average 5 percent to Tk 4.14 per unit (each kilowatt hour) from Tk 3.94 per unit. Bulk tariff was raised by 8.06 percent to Tk 6.70 from Tk 6.20 per unit.

Enhancement in bulk tariff means, the distribution companies will purchase electricity by an increased rate of Tk 0.50 per unit from Bangladesh Power Development Board (BPDB) while enhancement in retail tariff means, consumers will have to pay enhanced rate for using electricity.

Earlier on January 13, the government raised the electricity tariff by 5 percent at the retail level with effect from January 1.

At that time, the average tariff for all consumers went up by Tk 0.36 to Tk 7.49 from Tk 7.13.

On November 21, the bulk power tariff was hiked by 20 percent to Tk 6.20 per kilowatt hour by Bangladesh Energy Regulatory Commission (BERC) with effect from December 1.

The government recently amended the BERC Act empowering the Power Division to raise power, gas and petroleum fuel by administrative power any time it wants.

Applying that amended Act, the new gazette notification was issued on January 30 to raise the electricity tariff at bulk and retail levels, bypassing the authorities of the energy regulator.    

Meanwhile, energy experts believe the tariff enhancement decision came in compliance with the conditions of the International Monetary Fund (IMF) that recently approved $4.5 billion in loan to Bangladesh.

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