Bangladesh raises retail power prices by 5% for the third time since Jan 12

The government has raised retail power prices by 5 percent, the third hike in less than two months.     

The new rates will be effective from March billing, according to a notice published by the Power Division on Tuesday.

On a weighted average, the prices have increased to Tk 8.24 per unit from Tk 7.25 set for February on Jan 31.

Before that, retail power prices were raised by 5 percent for the first time in three years on Jan 12.

While increasing the bulk power tariff in November 2022, the government said it needed to cut hefty subsidies for power but did not want to raise retail prices as people were struggling to cope up with rising cost of living.

Later, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said retail gas and power prices would be readjusted every month in line with the global energy prices. In that case, if prices decrease in the international market, they will also fall here.

By the end of January, parliament codified a new law which provides discretionary powers to the government to change electricity and energy prices whenever necessary.

Prior to the enactment of the law, only the Energy Regulatory Commission, or BERC, had the power to adjust energy prices after consulting stakeholders at public hearings.

But the government felt the necessity to amend the law after a hike in fuel prices in August last year was challenged in the High Court.