Power tariff raised again by 5pc at retail level

Staff Reporter :
For the third time this year, the government has hiked power tariff by 5 per cent at the retail level sending both household and industrial consumers into another round of shock amid soaring prices of daily necessities.
The Power Division of the Ministry of Power Energy and Mineral Resources issued a gazette notification Tuesday.
The new electricity price will be effective from today (1 March, 2023).
Earlier on 30 January, the government hiked electricity prices, twice in 20 days, by 5 per cent at the retail level.
Less than three weeks prior, on 12 January, electricity prices had increased by 5 per cent . The hike was retrospective in nature as it would apply for the entire month.
Following two hikes in less than a month, the average retail price was increased from Tk7.13 to Tk7.85 per kilowatt hour (kWh) at the customer level on 30 January.
The hike coincides with the International Monetary Fund’s approval of a $4.7 billion loan sought by Bangladesh.
The hike is believed to be part of reforms given by the IMF for the loan approval.
Commenting on fresh power tariff hike, BGMEA Vice President Shahidullah Azim said that the government committed to providing uninterrupted electricity and gas based on which industry owners agreed to pay a 25 per cent in addition on gas prices.
“But the government has not ensured uninterrupted electricity and gas supply as of yet,” he added.
On the other hand, the BGMEA leader noted that gas and electricity prices hiked in a short span of time which could put businesses in a difficult state. “Increase in the retail tariffs of electricity always drives up the production cost.”
Azim also expressed fears that many garment factories might shut down within a year, owing to high cost of production.