Power price to rise by Tk1.25 per unit

The Technical Evaluation Committee (TEC) of the Bangladesh Energy Regulatory Commission (BERC) has proposed a weighted average increase of Tk1.25 per kilowatt-hour (kWh) in retail electricity tariffs.

According to BERC, the recommended tariff adjustment could lower the government’s electricity subsidy burden by as much as Tk13,000 crore in FY2026-27.

The committee projected the combined net revenue requirement of all electricity distribution utilities at Tk1,19,285 crore against estimated power sales of 95,612 million kWh in the next fiscal year.

The TEC assessment also forecast a slight improvement in the country’s distribution system loss, which is expected to decline to 7.37 percent in FY2026-27 from 7.38 percent in FY2024-25.

Committee members said the existing consumer slab structure would remain unchanged, except for the lifeline category covering consumers using up to 50 units of electricity.

They rejected a proposal to merge the current 0 to75 unit slab into a wider 0 to 200 unit bracket, noting that such a move could place extra pressure on low-income consumers because of abrupt slab transitions.

The recommendation comes as the power sector faces growing financial strain due to higher electricity generation costs, rising fuel import expenses and the depreciation of the taka against the US dollar.

A day earlier, the Bangladesh Power Development Board (BPDB) proposed raising wholesale electricity tariffs by Tk1.20 to Tk1.50 per unit, warning that the sector’s financial deficit could deepen without a tariff revision.

The proposal has already triggered criticism from consumer rights groups, business representatives and political parties, who argue that another increase in electricity prices would add to the burden on households and industries already grappling with inflation and rising production costs.