Staff Reporter :
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) and the European Union Chamber of Commerce in Bangladesh (EuroCham) have expressed serious concerns regarding the Bangladesh Energy Regulatory Commission’s (BERC) proposed revision of industrial gas tariffs, cautioning that the changes could adversely affect investment and industrial competitiveness.
In a statement issued on Tuesday, FICCI criticised the proposed differentiated tariff structure, which would impose higher rates on industries with new Gas Sales Agreements (GSAs), increased consumption, or recent connections. The chamber argued that such a move would disincentivise both foreign and domestic investment, disrupt competitiveness, and ultimately hinder economic growth.
Under the new tariff model, companies within the same industrial sector could face varying rates depending solely on the timing or terms of their supply agreements. FICCI warned that this would create an uneven playing field, complicating cost structures for expanding or newly established businesses.
“This model risks fragmenting the industrial sector and penalising growth,” said FICCI, noting that the policy could reverse the momentum built through initiatives such as the Bangladesh Investment Summit, which attracted participation from nearly 50 countries.
FICCI President Zaved Akhtar underscored the importance of predictability and fairness in utility pricing. “A transparent and equitable energy pricing framework is critical for investor confidence and sustained industrial growth,” he said. While acknowledging the broader challenges of energy management, he urged BERC to revise its approach to better align with Bangladesh’s economic development and foreign direct investment (FDI) goals.
The chamber also highlighted uncertainties surrounding the classification of new GSAs signed by existing customers. Under the current proposal, these agreements could be treated as new connections, potentially leading to arbitrary reclassification and operational disruption for long-standing users.
Several stakeholders raised similar concerns during BERC’s public hearing held on 26 February. FICCI called for continued engagement between the government, regulators, and industry representatives to ensure that ongoing energy reforms foster rather than hinder sustainable industrial development.
FICCI reiterated its readiness to collaborate with the government to support energy resilience and urged wider stakeholder consultation before implementing any structural tariff reforms.
Echoing similar concerns, EuroCham Bangladesh emphasised the need for a collaborative and transparent approach to energy pricing. While recognising the government’s efforts to transition towards a more sustainable energy future, EuroCham cautioned that the proposed differential tariff mechanism-based on contract timelines and connection status-could have a chilling effect on investor sentiment.
“New and expanding industries may face disproportionately higher tariffs compared to more established competitors, despite operating in the same sector,” said EuroCham. This imbalance, the chamber warned, could undermine Bangladesh’s global competitiveness and deter fresh investment.
Nuria Lopez, Chairperson of EuroCham Bangladesh, highlighted the importance of a stable policy environment to retain and attract European investors. “Fragmented energy costs across comparable operations may erode Bangladesh’s competitive edge,” she said.
Both FICCI and EuroCham called on BERC and the Ministry of Power, Energy and Mineral Resources to deepen consultations with industry stakeholders and develop a tariff framework that promotes competitiveness, predictability, and long-term investment support.
The business community now awaits a reassessment from regulators that strikes a balance between energy sustainability and continued economic expansion.
